While companies are bracing themselves for the forthcoming rise in employer national insurance contributions, which was announced by Ms Reeves in October and takes effect from April, thoughts are beginning to turn to next month’s Spring Statement.
On Wednesday, March 26, the Chancellor will unveil her latest plans to
boost the UK economy. The following day, The Herald will host a Budget Briefing, the first event for 2025 in its Herald Live series, which brings key
issues from print to the public, to help businesses navigate the impact of Ms.
Reeves’ proposals.
The event will be hosted by The Herald columnist and political commentator Brian Taylor. The panel includes Derek Hanlan, associate tax director at Martin Aitken & Co Ltd, Grant Johnston, partner and head of wealth planning at Wright, Johnston & Mackenzie LLP, Zoe Graham, UK Head of Financial Risk Solutions, Virgin Money and João Sousa, deputy director of the Fraser of Allander Institute at the University of Strathclyde.
Mr Hanlan said: “The upcoming Budget is fascinating to predict. The October Budget was only four short months away, yet the global economy and political outlook remains uncertain.
“However, with the NIC increases in the October 2024 Budget still to bite, together with the Labour promises against income tax, corporation tax and VAT (value-added tax) rises, there is perhaps little room for manoeuvre for the Chancellor.
“Can Ms Reeves tread the line successfully between meeting her growth objectives and maintaining taxpayer confidence? We await with interest.”
Mr Johnston said: “We are not expecting any major new policy announcements at this time. While this Spring Statement may not be on the scale of the 30 October 2024 event, it does provide the Chancellor with an opportunity to raise taxes and potentially adjust some of the more debated measures from the Autumn budget that have faced public scrutiny.
“The Chancellor’s plans for economic growth face challenges, with the Bank of England now predicting that the economy will grow by only 0.75% this year—down from the previous forecast of 1.5% just three months ago. We await with interest to see whether the Chancellor will use the Spring Statement to introduce measures aimed at altering this trajectory.
“Looking to the longer term, the Spring Statement may offer businesses and families insight into how the Labour government intends to leave its mark over the remainder of its term.”
David Henderson, head of strategic finance at Virgin Money, said: “Virgin Money are delighted to be supporting this event and to host the breakfast briefing at our head office here in Glasgow.
“A lot has happened in our economy and across the global political landscape since the Autumn Statement, and the Spring Budget is sure to add to those talking points, so the briefing will be a great chance for business leaders, owners and advisors to gather together to discuss the impact of any proposed changes on their companies.”
The event will be held at the Virgin Money head office at 177 Bothwell Street in Glasgow on the morning of March 27, the day after the Chancellor of the Exchequer presents the Spring Statement and the latest forecasts for the UK economy from Office for Budget Responsibility (OBR).
Tickets are free of charge and registration to attend is now open. Click here for more information.