News

Life is always changing for tax advisors as every year Chancellors announce changes to the tax system in the hope of stimulating growth that then raises taxes to pay for public services such as the NHS and education.

However too much change is not always a good thing especially if the timing is that of a dancer with two left feet.

The government usually has to consider the costs of any announcements made in the annual Budget to ensure the markets have confidence in the UK economy. These costings are supplied by the Office of Budget Responsibility (OBR) as part of the budget. The absence of OBR costing meant the mini-budget was not a budget.

In the last few weeks we have seen how important market confidence is.  For the ordinary person in the street, it impacts on the value of sterling against the dollar with oil priced based on the dollar and on mortgage interest rates. For the Government, it can increase the interest payable on government debts which are ultimately paid by the taxpayer.

The Chancellor has now announced a number of measures with OBR costings to try to restore confidence in the markets. This is in advance of the 31 October Medium-Term Fiscal Plan – the fourth announcement by the fourth Chancellor in 4 months.  

These measures are listed below:

The markets, business and the ordinary voter craves stability. Hopefully whether they are called budgets, mini-budgets or announcements, the next Chancellor statement will be more measured than the September 2022 mini-budget that wasn’t a budget.