The Prime Minister promised a Budget within 100 days of the election result, so we can expect a Budget in February or March with any changes to taxes, benefits and allowances potentially taking effect in April.
The headlines are likely to include cancelling the scheduled cut in next year’s Corporation Tax rate, and reforming Entrepreneurs’ Relief but we are unlikely to see any of the details before the Budget. We are not expecting changes to Income Tax or VAT.
Some commentators are speculating on whether bigger changes are on the way, given the scale of the Conservative majority. Many are hoping that the Budget will include liberal spending plans, stimulating the economy and strengthening consumer confidence.
There are still challenges ahead, not least securing a deal with the EU before the end of 2020. Business investment had ground to a halt in the three months running up to the election, however business organisations have been quick to respond positively to the stability the general election results can bring.
British Chambers of Commerce, Director General Dr Adam Marshall suggests:
“Restoring business, investor and consumer confidence – and firing up the economy – must now be the Prime Minister’s top priority”.
He calls for “swift, decisive action to avoid a messy & disorderly exit from the EU and to tackle the barriers holding back investment and growth here in the UK”.
Carolyn Fairbairn, CBI Director General, urged Boris Johnson to use the mandate he has been given to “rebuild confidence in our economy and break the cycle of uncertainty”.
“Early reassurance on Brexit will be vital. Firms will continue to do all they can to prepare for Brexit but will want to know they won’t face another no deal cliff-edge next year. Pro-enterprise policies on immigration, infrastructure, innovation and skills, will help relaunch the UK on the world stage.
Despite recent challenges, the UK remains a great place to start and build a business. A new contract between enterprise and government can make the UK a global magnet for investment, powering higher productivity and living standards across the UK.”