United Kingdom cuts growth forecasts in first budget plan since Brexit vote

The fiscal landscape is grim during the next few years.

“Reducing the frequency of fiscal events along with the commitment to stick with the tax roadmap will provide stability for businesses”. The UK is known as the “whiplash capital of the world” so it’s vital that government implements these proposals without delay to ensure consumers can start getting a fairer deal as soon as possible.

The National Living Wage will increase by 30p an hour to £7.50 for over-25s in April and fuel duty will be frozen, in a move that will save the average auto driver £130 a year.

“Raising productivity is essential for the high-wage, high skill economy that will deliver higher living standards for working people”, he said.

“Moreover, a further £1.1bn invested in local transport projects, combined with 100% business rates relief on digital infrastructure over the next five years, will create serious demand for skilled engineers”, he added.

“73% of all businesses see tackling road congestion as important”. An extra £220 million will also be given to help address traffic pinch points on strategic roads around the country. “Additionally, firms will be looking for clarity on the future of the Levy Control Framework in Budget 2017”. Requirements for better internet access will only grow with the adoption of new technologies.

He said the United Kingdom government would “maintain our commitment to fiscal discipline, while recognising the need for investment to drive productivity and fiscal head room to support the economy through the transition”.

The money will be allocated to the Scottish Government over the five years through to 2020-21, as a result of increased infrastructure spending announced in the Autumn Statement.

The UK’s gig economy, powered by self-employment and casual work, is starting to hit government revenues. “It is vital that the government uses this to signal a radical rethink in its housing strategy and consider measures such as building homes on unused Green Belt land to really kick-start the house building boom we badly need”.

Companies will not be able to avoid tax by borrowing “excessively” in the United Kingdom to fund overseas activities and will now “always” pay tax in years where substaintail profits are made.

“Improving our export performance and attractiveness as a destination for foreign direct investment is crucial to growth, productivity and innovation”. Housing associations, developers and councils will be able to bid for a larger pot of money to fund new affordable housing. From autumn 2017, the United Kingdom will have an autumn budget, announcing tax changes well in advance of the start of the tax year.

Jonathan Riley, head of tax at Grant Thornton agreed with Field, describing the budget as a “missed opportunity” to make big changes.

The growing popularity of salary sacrifice schemes is being targeted by the government to remove the “unfair” state of affairs which see some people pay more for goods than others.

There will be £170 million invested in flood and resilience measures.

HMRC have also told ContractorCalculator today: “We will be publishing legislation and customer guidance together with a summary of responses to the consultation”.

“The Chancellor has also signalled a welcome recognition that our digital network and local roads are not fit for objective and need major upgrade”.