News added on 24.09.2020

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Budget

2020 Budget cancelled

Chancellor Rishi Sunak has decided to call off the 2020 Autumn Budget, quashing rumours of an imminent tax grab - for now.

The annual Budget is generally the platform that is used to announce new tax measures. Over the summer of 2020, rumours that sweeping tax rises would be announced soon were plentiful. After six months of unprecedented government support for businesses and their employees, the focus was starting to shift to the question of “how will it all be paid for?”. However, the resurgence of coronavirus in an apparent second wave, and the accompanying new measures rolled out in mid-September have forced a rethink. The delay recognises that it would be both insensitive and inappropriate to make long-term financial plans when the virus is still affecting so many.

Instead there will be a brief statement of the government’s four-year spending plans, though there is no date set for this at present. Any new tax measures will have to wait until the virus is in decline again, and it is more likely that we will see more measures designed to help businesses get through the second wave first. Just what these may be is currently unclear, but they could be along the lines of earlier measures such as the VAT payment deferral seen earlier in 2020.

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