With the Autumn Statement being delivered on 3rd December 2014, our Tax Partner Alastair Wilson shares his predictions…
There are certain things that I think will be included in this year’s Autumn Statement. They are as follows:
- The Chancellor will be able to point to strong growth in the UK economy (unlike the Eurozone economies).
- A more obviously populist approach as we head towards an election with the emphasis on increasing the “take home pay” of as many voters as possible so that they feel their standards of living are improving – including more giveaways on Income Tax and NIC allowances.
- Detailed proposals for the devolution of more tax powers to the Regional Assemblies of Scotland and Northern Ireland. This will impact the North East as those other Regional Assemblies will be given powers to adjust taxes at a local level, which may affect our ability to attract external investment into the North East.
- More freedom and choice for people in regard to pensions – this will be a positive for those who want to save for retirement and will also reduce the reliance on the state pension (which costs the UK taxpayer an increasing amount every year).
- Changes to Business Rates for SMEs to reduce the impact of the Business Rates on SMEs.
- A continued focus on fighting ‘Tax Avoidance’ to plug the economic deficit, including a greater focus on what is perceived as cross border tax ‘avoidance’ by large multinationals.
Additionally, if I had a wish list, I would suggest the following:
- Increased incentives for job creation and training for SMEs
- Increases to tax incentives for investment in SMEs
- The ability to provide more tailored local incentives within the English Regions e.g. what works for job creation in London or Manchester does not necessarily work in Newcastle as our industrial backgrounds are very different – there should be flexibility at a local level
To discuss any of these points in more detail, please contact Alastair Wilson on 0191 285 0321 or email firstname.lastname@example.org.