As you will no doubt be aware the Chancellor has recently delivered his Spring Statement.
As expected, there were no immediate tax changes in the Spring Statement. The tax reform was clearly not on the Chancellor’s agenda with only a nod towards a continued commitment to the UK Digital Services Tax with some comments hinting at the possibility of summer Brexit Budget.
John Hawksworth, chief economist at PwC, comments on the Spring Statement:
"The Chancellor announced some very modest increases in future public spending today, but largely bided his time until the fog of uncertainty over Brexit clears. He did promise more jam tomorrow in an Autumn Spending Review, but only if an orderly Brexit can be achieved over the next few months.”
"If there is a disorderly 'no deal' Brexit, then economic growth and tax revenues are likely to be significantly lower. While fiscal policy might be relaxed in the short term to mitigate the economic pain from this shock, austerity would probably need to resume in the medium term to get the public finances back on track in a no deal scenario."