Yesterday, the Chancellor Phillip Hammond stood up, and with a few Winnie the Pooh analogies, updated the country on how the economy was performing.
And it was all positive – predictions for the UK’s economic growth, borrowing in inflation were all better than expected.
Which is all very well, but what does that mean in reality? And what else was announced?
Well this wasn’t a ‘proper’ Budget, so none of the usual ‘2p hike on a pint of beer’ type announcements, or proposed policy changes. It was just an update on where the country was at the moment, and what’s going to happen in the future.
So what does that mean for you? And is it all as rosy and as bouncy as Tigger is, as the Chancellor said?
Well, the good news is that we’re all going to feel a little bit richer. Everyday prices on things like food will stop rising so quickly, which means your income will go further, but you probably won’t realistically feel the benefit until the first quarter of next year. But at least there is light at the end of the tunnel.
For businesses, there were a few announcements to take away and ponder on.
£80m has been put aside to help small businesses taking on apprentices, good news which will mean an option for business owners looking for support in running their operations. If you are considering this, then please get in touch, I can help you go through the process and work out if this indeed is right for you and your business.
Business rates – there was an announcement that the revaluation date will be brought forward from 2022 to 2021, so not much to worry about at the moment, but obviously could mean a change for you in a few years’ time. One to keep our eyes on certainly.
A review has been announced into business productivity and how the least productive can catch up (does this mean an end to procrastination??!! – note to self to keep an eye on how long my ‘making a cup of tea’ process takes!). On a serious note, there was also good news to take away in that the review will also look at how to get around, and hopefully eliminate the age-old problem of late payments to small businesses. If they can do that, then there will be numerous cheers from businesses and accountants alike!
Of course, there is still some uncertainty surrounding Brexit – although there was more clarity on what it’s going to cost – over £37 billion. But that’s current predictions. No-one really knows at t his point how it’s going to affect the country, and therefore businesses operating in the UK. Organisations such as the CBI are said to be worried about the impact of Brexit, so the only advice I can give at the moment is to give yourself as much of a buffer as you can – to prepare for the worst, and you can only be pleasantly surprised.
So although there was positivity all around from the Conservative benches, I think the nation was more relieved that this was an announcement that brought a little relief but no announcements to rock the boat. That time will come, but in the meantime, it’s business as usual.
My advice is to get your affairs in order (gosh, that sounds a bit morbid!) and give yourself some rainy day funds to play with. Get in contact if you’d like some advice on how to plan for the future.