The Chancellor Philip Hammond delivered his spring statement recently, but with Brexit dominating the news cycle, you’d be forgiven for having missed it.
The spring statement is an annual update of the state of the economy, with government plans for taxation, spending and policy affecting people and businesses.
Here’s a handy summary of some key points announced, and what they could mean for your business.
GROWTH
The UK economy is expected grow by 1.2% in 2019. This is a downgrade from 1.6% which is what was forecast in October. In the short term, the reduced forecast means businesses can expect economic growth to remain slow.
In more positive news, the growth forecasts for 2020, 2021 and 2022 were all upgraded, meaning the Chancellor expects more growth than previously thought, in the next few years.
More growth in the longer term could mean more opportunities for companies of all sizes, and Philip Hammond said that that the British economy had defied expectations so far.
BORROWING
The government borrowed £3bn less than expected last year. The treasury now expects borrowing to be significantly lower than previously forecast over the next few years.
Higher government borrowing can push up interest rates across the board, making it more expensive for businesses to borrow money from banks. So a lower rate of government borrowing could be good news for businesses looking to borrow in order to grow.
CLIMATE CHANGE, EMISSIONS & FUEL
There were announcements on home heating systems and also on how business activity affects wildlife, but nothing specific on emissions or fuel policy. For now, this means no new regulations or tax changes directly affecting business vehicles and fleets.
However, be aware that over the next few years, clean air and ultra-low emission zones are still coming into force in UK cities like Birmingham, Glasgow, Southampton and London. Charges will be applied to commercial vehicles that are not compliant with European emissions standards. Indications are that these will remain in place regardless of Brexit.
SPENDING REVIEW AND AUTUMN BUDGET
We can expect a much bigger set of announcements from the Treasury on spending and economic policy in the next few months, before the usual Autumn Budget later this year.
Businesses should keep an eye out for any new decisions on taxes, fuel duty and regulations as they may affect expenses, income and decision-making in the future.
For more information on fuel cards, visit www.fuelgenie.co.uk
