Was there anything in the Spring Statement to write home about?

You could be forgiven for thinking that the Spring Statement was
little more than an opportunity for a ‘call to arms’ from the
Chancellor to his fellow Parliamentarians to think about protecting
the economy as they approach their historical votes on the future of
the UK’s relationship with the EU over the next 36 hours.

It is fair to say that, as expected, there were no immediate tax
changes in today’s Spring Statement. The Chancellor was at pains to
reiterate that the economic landscape remains robust but only as long
as the country proceeds with a Brexit deal, so this does leave the
door ajar for a possible summer Brexit Budget, should the situation
demand it.

But all that doesn’t mean that tax policy was entirely forgotten.
Behind the scenes the tax elves are busy beavering away. We received a
forewarning of a raft of consultations to come on areas ranging from
VAT to National Insurance, from Aggregates Levy to Capital Gains
Taxes, from Structures & Building allowances to Apprenticeship Levies. This will
likely mean that we will see a further proliferation of additional
measures layered onto an already complex tax system.

The Spring Statement also served as an opportunity for the publication
of a summary of measures that the Government has taken, since 2010, to
deal with evasion and non-compliance and to reduce tax avoidance. As
important as these measures are the hundred additional measures listed
serve as a further reminder of the significant changes that the tax
system has had to absorb over this period. No doubt also a useful
point of reference to any accusations that the Government isn’t trying
hard enough to tackle these areas.

We saw a ‘shout out’ in the Chancellor’s speech to the new Digital
Services Tax, it was clear that despite other territories getting
behind the OECD’s work to find a global approach to the global problem
of how to tax the digital economy the UK is still looking to forge
ahead with this brand new tax. This seems at odds with an ambition to
deliver a “Global Britain” that is competitive in the digital age.

With spending measures focused on housing and the environment
highlighted in the speech you could argue that the Chancellor’s was
very much trying to talk to future generations. But while
technological advancements continue apace and the ways in which people
wish to work constantly evolve, our tax system will find itself
lagging behind. It’s a shame that the opportunity wasn’t grasped to
highlight the need to overhaul the tax system to support modern ways
of working and doing business. If we really want to deliver for future
generations what is ultimately required is the start of a conversation
to address the fundamental issues within our tax system. There’s only
so long we can keep kicking the can down the road.