Autumn Statement 2016: Brexit and a New Chancellor, Major Changes Expected?

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May 24th 2022
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Autumn Statement 2016: Brexit and a New Chancellor, Major Changes Expected?

We look at this year's Autumn Statement by considering the views of a new Chancellor and the ongoing Brexit woes.

In just over a month's time newly positioned Chancellor Philip Hammond will deliver his first 'pre-Budget' report. The Autumn Statement is normally an opportunity for the Chancellor to address the state of the economy, health of the nation's accounts, check over the deficit and maybe provide some indication of relief for businesses and individuals.

We already know that Hammond has scrapped the plans of his predecessor George Osborne to balance the books by the end of the decade. The Brexit negotiations have made this a certainty as the economy feels the blows of what he describes as being a 'turbulent' time. By abandoning these plans he may be able to borrow more money to help prop up the economy toward 'longer term fiscal sustainability'. He has indicated that with borrowing costs at an all-time low it is a good time to borrow and invest in productivity boosting infrastructure.

He has indicated many times that he has a desire to provide investment and back new disruptive technologies to foster growth in the UK. Investment in British roads, railways, housing is on the cards. His focus is however on small projects rather than large scale splurges.

For businesses corporation tax was to be cut to 15 percent by Osborne but this is idea is also now on the scrapheap. However, a 17 percent target is in place for 2020. SME's can expect simplication measures to be introduced for tax reliefs continuing from previous Budgets. Contractors are waiting with bated breath for the impending reforms to the complex IR35 rules of which there should also be some indication within the Autumn Statement.

PM Theresa May recently indicated that the government would be shifting toward a 'tax and spend' policy in the longer term, which is in contrast to the Chancellor's current stance and could hint at taxation policy for the coming years.

We will provide more insight as the weeks roll-on and provide full coverage of the Autumn Statement from 12:30pm on November 23rd. Follow our updates to the Autumn Statement right here or by following our twitter @uktaxcalculator. All thoughts will be collated under the hashtag #AS2016.

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