Spring Budget - Colin Graham video transcript

This was a spring budget with few if any surprises. And it was notable for what wasn’t there as much as what was, especially in relation to support for business. 

The main reason was that this was a spring budget on a shoestring. Handcuffed by the lack of fiscal headroom, the Chancellor has opted for a 2p cut in national insurance. This is worth an average £450 a year to 27 million workers, according to government estimates. 

The result is a short term win for workers. But the freeze on income tax thresholds continues to lead us to the highest overall tax burden in nearly 100 years.

Based on OBR forecasts, and limited fiscal headroom, it is not clear whether any further blockbuster announcements can be made in an early Autumn Statement or pre-election.

Businesses would have been hoping to build on the momentum of the Autumn Statement, but will be somewhat disappointed. 

There can not be a sense of ‘job done’. What businesses wanted to see was a clear long-term tax roadmap. This is crucial in building business confidence, boosting investment and increasing productivity. It’s also essential in facilitating the transition towards Net Zero.