The UK Spring Statement 2018 was released mid-March. Could it affect you or your business? Take a look at some of the key findings below to find out.
What is the UK Spring Statement 2018?
- It provides an update on the economy and forecasts by the Office for Budget Responsibility(OBR)
- Updates citizens on progress made since the last season's budget (in this case Autumn Budget 2017)
- Opens conversations around who people feel about the changes that the governement is considering.
According to the statement, the economy is on the up, which is continuing to create new jobs. It's grown for the last five years, and even exceeded expectations in 2017.
Of all industries, manugacturing is seeing the longest period of growth in 50 years. Exmployment is increasing as well, with a whopping 3 million jobs since 2010. In addition, unemployment is at the lowest it's been in 40 years. Women in the workforce are also at a record high, and inflation is expected to fall in the next year, with wages rising quickly over the next five.
Housing and Infrastructure
In April of this year, the National Living Wage rose to £7.83, which equates to £600 more per year for a full-time worker. According to the government, this will benefit more than 2 million people. There is an investment programme of £44 billion that was announced at the Autumn Budget 2017. The aim is to raise the supply of homes to an average of 300,000 per year by mid-2020.
The Spring Statement 2018 reiterates this goal:
- Government is working within 44 areas on bids of upwards of £4 billion in House Infrastructure Fund, which will aid in building much needed homes
- Financial support from the Housing Growth Partnership, which helps small housebuilders, will be doubled to £220 million
- London will be given £1.67 billion to build an additional 27,000 affordable homes by 2022.
During the Autumn 2017 Budget, an announcement was made that business rates revaluations will take place every three years, instead of the previously though five years. Bills would then be accurately reflected for the current rental value of properties. The Spring Statement 2018 states that the next revaluation due in 2022 will be announced in 2021. Because of this, many businesses will benefit from the change to three-year revaluations, with the very first one happening in 2024.
So what could this mean for you? Take a look at the infographic below to find out!
The Spring Statement 2018 will no doubt benefit millions of people. With changes in wages, the growth of the overall economy, housing, and business rates, this Spring Statement could be one of the best yet. Do you agree? Comment below and let us know!