No more Autumn Statement
Following calls by businesses, economy and tax experts such as the International Monetary Fund, Institute for Government, the CBI, Chartered Institute of Taxation and the IFS, the Chancellor last week announced the death of the Autumn Statement.
In future the UK will move to a single fiscal event after the spring Budget next year, which will be the final Budget held in the springtime. There will be a second Budget before the end of 2017 to switch to the new timetable.
Spring Statement
By law the Office for Budget Responsibility is required to produce two forecasts a year for the economy and the public finances. One of these will remain at Budget and the other will fall in the spring which the government will respond to with a Spring Statement. If economic circumstances require it, then the government will retain the option to make changes to its fiscal policy at the Spring Statement.
Future Finance Bills
Following the spring Budget, it is expected that a Finance Bill will follow in spring/summer of 2017.
From winter 2017, Finance Bills will be introduced following the Budget, with the aim to achieve Royal Assent in the spring, before the start of the following tax year. This change in timetable will help Parliament to scrutinize tax changes before the tax year where most take effect.
Most measures proposed at a Budget will have already been subject to policy consultation in the spring and draft legislation in the summer, before being legislated in the Finance Bill after the following Budget.
Summer ‘Legislation day’
Since 2011, most tax policy consultation summaries and draft Finance Bill legislation have been published on ‘Legislation day’, following the Autumn Statement. This year it will be on 5th December. From 2018 however, this will move to the summer.
Advanced warning of tax changes
The Government believe that a single Budget and the new timetable to bring forward tax changes so they are legislated for before the start of the tax year will be beneficial to taxpayers. Making the transition to the new timetable will require adjustments to the normal tax policy making process due to the shorter interval between the two Budgets. Arrangements will be decided individually for different tax policies and set out to the relevant taxpayer group by HMRC. Where possible, these policy proposals and draft legislation will be subject to consultation.
The move to a single Budget is to be welcomed as it should mean that businesses and individuals will face less frequent changes to the tax system. Whether this promotes certainty and stability however, remains to be seen.
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