The Autumn Winter or Spring Statement…

All Budget announcements come with a certain amount of conjecture. The Autumn Statement 2020 is amongst one of those where I have seen the rumour-mills whirring more than others throughout my many years as a tax adviser.

Rishi Sunak has now confirmed that the Autumn Statement 2020 will be pushed into 2021 to allow him time to implement more in the series of 2020 fiscal recovery packages in response to Covid-19. The Treasury have stated that longer-term plans have been put on hold in order to concentrate on the ‘here and now’.

We were however expecting a mini spending review in the Autumn. Is it now unclear whether this will be in addition to the ‘Winter economic recovery package’ or as well as those planned changes.

Whatever the date may be, it is likely that there will be a number of measures to generate funds for the Treasury and go some way to rebuilding the economy after the billions which have been spent on the COVID-19 response.

Here are some of the rumours I have heard which may, in time, have an impact on the consumer’s pocket:

• The living wage – was due to increase to £9.21 next tax year (and to £10.50 by 2024) but it is possible this will be delayed

• Class 4 National Insurance Contributions (NIC’s) for the self-employed – may rise to 12% which is the same NIC’s as those in employment pay (but with currently greater benefits for employees in return for the higher contribution)
• Corporation and Capital Gains Tax (CGT) increases
• Cuts to pension tax relief