The Chancellor of the Exchequer, Phillip Hammond will be delivering the inaugural Autumn Budget Wednesday, November 22, 2017.
What will the Autumn Budget contain?
The Autumn Budget will outline fiscal forecasts from the Office for Budget Responsibility (OBR) and planned tax changes well in advance of the start of the new tax year.
This will be the second Budget we’ve had this year. The Chancellor delivered the last Spring Budget on 8 March 2017.
Find out what tax changes were announced in the Spring Budget earlier this year in UK Spring Budget 2017: key points at a glance.
Autumn Budget predictions and rumours
As we’ve already had a Spring Budget this year, it’s unlikely that there will be any major changes.
However, there are rumours that the Chancellor will try and appeal to younger voters, by shaking up student loans.
The Sunday Times reports that Hammond might cap tuition fees at £7,500 instead of £9,250 and force universities to charge differently depending on the course’s employment rate.
Capping interest rates on student loans and increasing the salary threshold for payments may also be considered.
Following major changes to pension contributions and buy-to-let mortgage interest relief RSM, a tax consultancy service, predicts that the Enterprise Investment Scheme (EIS) could be hit next.
The EIS provides tax relief worth 30% for investments in high-risk companies plus Capital Gains Tax exemption on disposal of the shares after a set period.
RSM says the EIS has been a useful source of finance for start-up companies since its introduction in 1994 enabling investments of £15.9 billion in around 26,000 companies. But many view the EIS as a way for the wealthy to avoid paying up to £300,000 of tax.
The scheme, along with its younger sister Seed Enterprise Investment Scheme (SEIS), has been put under review this year so it’s possible the November Budget could set out changes.
RSM predicts this could mean cutting the relief from 30% to 20% and increasing the period EIS shares have to be held.
How to have your say
The government is inviting members of the public to have their say and submit suggestions for the Autumn Budget 2017 by filling out this survey by Friday, September 22.
You just need to raise one or two issues and explain why they should be considered, along with any evidence that could support your proposal.
What’s happened to the Autumn Statement?
The government wants only one major fiscal event in each year.
So the Chancellor will no longer deliver an Autumn Statement in November, instead, there will be an Autumn Budget and rather than a Spring Budget, from 2018 there will be a Spring Statement.
The Spring Statement will allow the government to respond to forecasts from the Office for Budget Responsibility (OBR), but won’t be a ‘major fiscal event’.
However, if there are unexpected changes in the economy, the government will have the flexibility to announce actions in the Spring Statement.
Hammond announced the change in November 2016 during his last Autumn Statement speech in which he said: "No other major economy makes hundreds of tax changes twice a year, and neither should we”.
The Chancellor says that the new timetable will allow tax changes to be put under much more Parliamentary scrutiny before they are implemented.