A rare second Budget is being prepared for the Autumn of this year, after last year’s Autumn Budget was deferred due to the ongoing COVID-19 pandemic.
Amidst the financial twists and turns that have left business owners across the UK on edge over the last couple of years, a rare second Budget is being prepared for the Autumn of this year, after last year’s Autumn Budget was deferred due to the continuation of the COVID-19 pandemic.
When is the autumn budget and how do I watch it?
Chancellor of the Exchequer Rishi Sunak announced last month that he will present the new Autumn Budget on the 27th of October, nearly nine months after the first budget of 2021 on the 3rd of March. The Budget is usually presented during the early afternoon, it typically lasts an hour, and it’s available to watch on the BBC News or Sky News channels, including on BBC iPlayer and Sky News’ YouTube Channel.
What are the plans for this budget?
Every new budget comes with its promises beforehand, but it’s important to not set our expectations too high and consider the likelihood of different outcomes. For instance, Sunak expressed his desire to cut taxes at the Conservative Party conference on 4th October, but acknowledged that doing so may prove difficult for the time being whilst public finances are not yet on a sustainable path. With the improved economic recovery of the summer yielding greater tax receipts for the Treasury, there could be promising things in store regarding the lowering of tax rates. This being said, current complications relating to rising wages and energy prices, as well as the ongoing supply chain issues resulting from a lack of HGV drivers, may have put a spanner in the works for plans to cut taxes. Moreover, the official end of the furlough scheme, which was introduced to help employers pay employees during lockdown, could result in workers being laid off, or even businesses having to close their doors entirely, leading to increased unemployment and potentially more tax money needed to spend on benefits.
What changes might there be to aid business recovery post-COVID?
- R&D tax credits – During the Budget in March, a review was announced into Research & Development tax incentives, a relief scheme aimed at businesses that work towards developments in science and technology, allowing companies that are eligible to recover 33.35% of what they spend on research and development activities. The review primarily pertains to what qualifies as research and development and how much can be claimed, so it’s possible that higher rates of relief are planned to be announced during the upcoming Budget.
- EIS and SEIS tax relief – Another possibility is that Sunak could look to aid business recovery by encouraging investment in companies, perhaps by boosting the amount of money businesses can raise by applying for the Enterprise Investment Scheme or the Seed Enterprise Investment Scheme. These plans help businesses raise finance by offering tax reliefs to individual investors who buy new shares in a company.
If would like to know more on the subject of business recovery in the post-COVID era, contact Voscap today at 020 7769 6831 or email team@voscap.co.uk to speak to one of our business recovery specialists.
