Unlike the chaos that preceded the Autumn Budget, the Spring Statement was set to be a more subdued affair.
However, the outbreak of conflict in the Middle East created ripples around the world that shook the economic climate in unforeseeable ways.
This resulted in the Spring Statement landing without the calm stability it had been written to provide.
Without clear guidance from the Spring Statement, businesses need to understand how changing economic conditions could impact them.
What was announced in the Spring Statement?
With a distinct absence of policy announcements or revisions, the Spring Statement instead was a time to reflect on the current UK economy.
This was punctuated by the positive Office for Budget Responsibility (OBR) forecast that showed modest growth in the coming years and a potential reduction in borrowing over time.
However, the data seemed to be out of date, even as the Chancellor spoke, for the conflict in the Middle East was barely acknowledged.
No real provision was made for the rise in energy and fuel costs, nor for the way that global economic instability could impact the UK economy.
Instead, businesses were left to weigh up the economic pressures without Government acknowledgement or assistance once more.
What is the impact of the Spring Statement?
Given that many businesses felt overlooked by the Autumn Budget, the lack of course correction in the Spring Statement was viewed as disappointing.
There was a view that one way to help businesses and tackle rising youth unemployment would be to delay the increase to the National Minimum Wage.
While this did not happen, there was concern that nothing was done to address the concerns of business owners that operational costs are becoming steep.
With the conflict in the Middle East likely to push up operational costs even further, the silence from the Spring Statement has succeeded in doing the opposite of what it was planned to do.
In order to keep pace with mounting economic pressure, businesses are being left to fend for themselves.
A better option is to seek professional financial support before the new tax year begins to ensure that you are prepared for the changes.
This year sees some of the impact of the Autumn Budget and the Employment Rights Act affecting payroll and other business expenditure.
Our team can help you understand your changing obligations while also budgeting to better endure the fallout of global economic instability.
Speak to our team today to regain confidence after the Spring Statement.
