SPRING BUDGET 2024 DATE CONFIRMED FOR 6 MARCH

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Chancellor Jeremy Hunt will deliver the 2024 Spring Budget on 6 March, the government has confirmed.

The Budget will include the government’s tax and spending plans as well as new growth and borrowing forecasts.

It could be the last chance for the government to announce significant changes to tax policy before the general election.

The Chancellor used his last big fiscal speech, the Autumn Statement, to extend tax breaks for business and cut National Insurance contributions (NICs).

The Office for Budget Responsibility has been formally commissioned to publish economic forecasts on 6 March.

Internet link: GOV.UK

UK AT RISK OF RECESSION AFTER ECONOMY SHRINKS

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The UK is at risk of recession after revised figures showed the economy shrank between July and September, according to data from the Office for National Statistics (ONS).

Gross domestic product, which measures the health of the economy, contracted by 0.1% after previous estimates suggested growth has been flat.

Meanwhile, there was zero growth between April and June, after it was first calculated to have risen by 0.2%.

A recession is typically defined as when the economy shrinks for two three-month periods – or quarters – in a row.

Meanwhile, the UK’s inflation rate fell to 3.9% in the year to November, the ONS confirmed.

The fall was bigger than the ONS had anticipated with lower petrol prices contributing to the reduction in the inflation rate.

Price increases for bread and cakes are also easing, according to the ONS.

David Bharier, Head of Research at the British Chambers of Commerce (BCC), said:

‘Today’s data showing the CPI rate grew at 3.9% in November, a greater slowdown than expected, is welcome confirmation that the headline rate of inflation is continuing to ease. However, prices are still rising from a very high base following multiple economic shocks and core CPI remains stubborn at 5.1%.

‘Persistent inflation and high interest rates are likely to remain a barrier to business growth for some time to come. Businesses are desperate for a clear, long-term plan for growth which sets out a vision for infrastructure, skills and green innovation.’

The fall in inflation followed the Bank of England’s decision to hold interest rates at 5.25%, marking the third time in a row that the Bank has left the rate unchanged.

Bharier said:

‘While a cut in the interest rate could have provided some relief for firms ahead of Christmas, [the] decision to hold at 5.25% was expected and allays fears of further rises.

‘UK businesses have been faced with the twin shock of an inflation crisis and increased borrowing costs.

‘The BCC’s latest Economic Forecast expects only a 0.25% point cut in the interest rate for the whole of 2024, although businesses need to be prepared for any unexpected changes given the uncertain policy landscape.’

Internet link: ONS website ONS website BCC website Bank of England website BCC website

COUNTDOWN FOR 5.7 MILLION TO FILE THEIR 2022/23 SELF ASSESSMENT TAX RETURN

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With less than a month to go to the self assessment deadline 5.7 million taxpayers have been urged to file their 2022/23 tax returns by HMRC.

HMRC data shows almost 6.5 million customers have already beaten the self assessment clock by filing their tax return.

This includes 49,317 taxpayers who used the New Year holiday to get a head start on their tax obligations:

  • 25,593 taxpayers filed their tax return on New Years Eve, with the most popular time being between 12:00 and 12:59, when 2,677 customers filed
  • 127 taxpayers saw in the New Year by filing their tax return between 00:00 and 00:59 on 1 January
  • 23,724 taxpayers filed on New Year’s Day, with the most filing between 15:00 and 15:59.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

‘The clock is ticking for those customers yet to file their tax return. Don’t put it off, kick start the new year by sorting your self assessment.’

Internet link: HMRC press release