Good or bad for businesses – What is the impact of the say nothing Spring Statement?

The Spring Statement was a quiet affair, certainly compared to the chaos of the Autumn Budget.

It was known before the event that little to nothing would be changing, but that did not stop some businesses from hoping for an eleventh-hour reprisal to some of the cost increases that are coming in the new tax year.

The outbreak of conflict in the Middle East and the economic ramifications of it would also need to be considered when determining the state of the UK economy.

Yet the Spring Statement remained a say-nothing spectacle, causing business owners to feel abandoned.

This is why it is important to understand the current economic climate and how businesses can prepare.

What was announced in the Spring Statement?

No policy or plans were confirmed in the Spring Statement as the Chancellor insisted that the current course was the correct one.

In a typical Spring Statement, the fact that this was supported by a positive Office for Budget Responsibility (OBR) forecast would have been reassuring.

It was apparent that modest growth would likely occur in the coming years and borrowing could fall accordingly.

However, the lack of true acknowledgement of the impact of the conflict in the Middle East made the Spring Statement feel outdated even as it was being uttered.

The increase in costs for fuel and energy and the disruption to global trade were not acknowledged or addressed.

The Spring Statement was geared towards stability, but the world had notably changed since it was written and the Statement had clearly not been updated.

What is the impact of the Spring Statement?

One of the common complaints following the Autumn Budget was that businesses had been overlooked.

Many SMEs, in particular, felt that the Government had not paved the way for their growth or taken seriously concerns around rising costs.

This had resulted in a rumoured deferral of the increase to the National Minimum Wage as a way to tackle both rising youth unemployment and rising business costs.

Nothing of the sort was announced and neither were any other reliefs that could have eased the pressure on businesses.

Instead, businesses are once more left to brave mounting economic pressures without the support of the Government.

What they do have is the chance to seek professional financial advice before the new tax year begins.

Our team understand the pressures and challenges that you face and the way that obligations might change over the coming months.

This year sees the impact of both the Autumn Budget and the economic effects of the Employment Rights Act, so clear preparation is needed.

We can help your business to budget so that you can brace for changing economic conditions.