Chancellor Rishi Sunak has a fine line to tread when it comes to priorities in this month’s upcoming Autumn Budget, which together with the Spending Review is “highly anticipated”.
Dyke Yaxley’s Tax Director, Francesca Hutcheson, said: “The Government has already announced planned future Corporation Tax and National Insurance Contributions rises this year.
“But there is still concern over how they will cover the large amount of borrowing made during the pandemic as well as future social care costs.
“It’s clear that there is a fine line to tread between increasing taxes now or waiting to see the impact of a forecast economic recovery on the Governement’s coffers.”
Francesca said in his speech at the Tory Party Conference, Rishi Sunak said public finances must be on a more sustainable footing before tax cuts could be contemplated.
“This may set the stage for some pre-election giveaways in the run-up to the 2024 election – but tax rises are only one option to rebalance the books.
“The Chancellor may also decide to tackle the abuse of the Covid support schemes known as “furlough fraud” and other ways to clamp down on tax avoidance in order to plug the tax gap. He may also look at tighter regulations to tackle climate change.”
Francesca said there were several positive measures Mr Sunak could take to support businesses and boost the economy including;
- Making temporary capital expenditure tax break permanent
- Increasing tax breaks to encourage investment in start-up businesses
- Bringing in new tax incentives for exporters
“It may be a step too far to embrace the Labour Party’s plans to scrap business rates altogether, but there is no doubt that the high streets and hospitality sector are still in a fragile state.”
The Dyke Yaxley team are planning to hold a free lunchtime webinar the day after the Budget (on Thursday 28 October), where our experienced and knowledgeable specialists will dissect the Chancellor’s announcemnts.
Our speakers will analyise the Budget and Spending Review, focussing on what the key points mean for entrepreneurs and their businesses. Delegates will also have the opportunity to ask questions and share their thoughts.
To attend the webinar on Thursday 28 October at 12 noon please click here.