Spring Budget date announced
The Chancellor Rishi Sunak will be standing up in the House of Commons on Wednesday 23rd March to set up the government view of the economic forecast and how they feel their tax and economic policies can set out a road to recovery and growth across the UK.
VAT and Environmental tax policies always had a role to play in this regard. We only have to look at the way in which the reduction of the VAT rate for the Hospitality sector has been used – in part as a further support to those businesses – as they only had to first account for VAT at 5% on their supplies – now 12.5% til the 31 March before it returns to the full Standard Rate of 20%. The continuance of that reduction is certainly being lobbied for by the sector so that may be part of the news on the 23rd March.
Currently there is also a lot of media chatter on calls for the reduction of VAT on domestic energy costs to Zero from its current 5% rate – but as a blanket reduction applying to all households will that achieve the balance between support for those in “fuel poverty” against the reduction in VAT revenues from all households, rich or poor, that the Treasury would face?
There’s increasing attention on the role of Environmental Tax and how these can influence behaviour to support the Net Zero Carbon agenda – you may like to read our recent commentary in Informed – the Wales Business Magazine – supported by Chambers Wales that provides an important policy voice for businesses across South East, South West and Mid Wales - where we look at how VAT and other Environmental Taxes can be used as an environmental incentive.
As ever we’ll update you on the VAT and Environmental Tax implications from the next Budget as they are announced. Should you need any support before then do get in touch via firstname.lastname@example.org or through your usual Centurion contact
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