Spring Statement 2022 – Smoke and Mirrors?

Chancellor, Rishi Sunak, delivered his Spring Statement on 23 March and it had almost crept under the radar given other global events. His statement was timed against a backdrop of the deepest cost of living crisis for many a year.

For businesses there were some apparent giveaways relating to the higher Employment Allowance, an extension to R&D relief (this had already been mooted) and a further extension to enhanced Capital Allowances but with Corporation Tax rates set to rise to 25% with effect from 1 April 2023, there is likely to be little jumping for joy.

For those in fuel or utility poverty, there were perhaps some nominal measures such as National Insurance threshold rises, 5p per litre fuel duty drop and some concessions on council tax and utility bills but these are perhaps a drop in a deep ocean.  The forward intention to drop Income Tax to 19% before the end of the parliament will no doubt be welcome, but it does rather seem to be an indication of a likely general election timing.

Head of EQ Taxation, David Morrison, commented, “For years, successive Chancellors have given with one hand and taken away with the other and this Spring Statement was no different.  No doubt the Chancellor had a difficult set of cards to play, but for those in real need of support, it’s difficult to see how these announcements would materially help.  We can only hope for more measures as the year ensues.”

For our full analysis of the announcements made, you can download our Spring Statement Summary 2022.

As always, we are here to offer our advice and support. If you’d like to discuss how these changes may affect you then please get in touch with your local office contact, email taxation@eqaccountants.co.uk or call one of our offices.