Press release

23 Mar 2022 London, GB

EY - Spring Statement: Jam today, cakes in the Autumn?

Rishi Sunak clearly considered that the lack of a formal Budget was no reason to avoid making changes that would have made many a Chancellor proud – eleven measures which between them encompassed immediate tax cuts, promises of further incentives and cuts in the Autumn and, to top it off, the ultimate rabbit from the hat of a cut in the income tax rate. There was not a single tax rise in sight

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Chris Sanger, EY’s Head of Tax Policy, comments on today’s Spring Statement:

“Rishi Sunak clearly considered that the lack of a formal Budget was no reason to avoid making changes that would have made many a Chancellor proud – eleven measures which between them encompassed immediate tax cuts, promises of further incentives and cuts in the Autumn and, to top it off, the ultimate rabbit from the hat of a cut in the income tax rate. There was not a single tax rise in sight.

“The immediate cuts were focused on today’s sources of pain – that of fuel duties – matched with commitments to allow the Chancellor to maintain credibility in the journey to Net Zero.  Beyond this, the measures were few but targeted.

“However, the Chancellor spent much of his speech in design mode, setting out his aspirations and announcing the publication of his 11 page “Tax Plan”, replete with potential costed announcements. This is a positive step forward, providing a forum for engagement, and avoids the criticisms of the previous business tax roadmap, which was more of a travel journal covering the past than a vision of the future.

“So, today the Chancellor not only provided some “jam” today but reached out for the recipes to ensure that he can deliver cakes in the real Budget in the Autumn.”