Does the Spring Statement Help Combat Climate Change?

Share:
Does the Spring Statement Help Combat Climate Change? | Future Business

Growth

Charlotte Sallabank, Partner at Katten Muchin Rosenman UK LLP, called Sunak’s moves a headline-grabbing statement with more meatier tax changes promised in the Autumn Budget.

“It’s a neat move to align the NIC and income tax thresholds; it’s an easy one for people to understand and is more straightforward than increasing the level at which the Health and Social Care Levy comes in, as had been called for  prior to the Statement. It will be simpler from an administrative perspective for the two thresholds to be aligned, also.

“The cut in fuel duty and the promised reduction in income tax basic rate is all encouraging. Note that the income tax reduction does not seem to be being applied to dividend income tax rates.”

She also pointed out that the reform of R&D allowances and changes to capital allowances are to be announced in the Autumn Budget and will come into effect in April 2023, saying it will be interesting to see how radical these changes will be; tinkering or more fundamental?

“The Tax Plan talks about ‘reforming’ some of the 1000 odd tax reliefs and allowances in the course of the remainder of this Parliament in the name of making the tax system ‘simpler, fairer and more efficient’. Does this really mean cutting them altogether?” she concludes.

Headlines

The Spring Statement builds on previously announced support for SMEs, including business rates relief
worth £7 billion over the next five years; increasing the Annual Investment Allowance from £200,000 to £1 million until March 2023.

The Employment Allowance will increase to £5,000 from April; a tax cut of up to £1,000 for around half a million small businesses.

The government welcomes the widespread commitments from firms and investors to divest from Russian assets and urges businesses to think carefully about investments that would in any way support the Russian government.

The business rates multiplier will be frozen in 2022-23, which is a tax cut for all ratepayers worth £4.6 billion over the next five years. Eligible retail, hospitality, and leisure businesses will also benefit from a new temporary 50 per cent Business Rates Relief worth £1.7 billion. The package of changes is worth £7 billion over the next five years and means:

• The average pub, with a rateable value of £21,000, will save £5,200
• The average convenience store, with a rateable value of £28,500, will save £7,000
• The average cinema, with a rateable value of £95,500, will save £24,000

Climate

The government will soon be setting out an energy security plan. This will include measures across hydrocarbons, nuclear and renewables to support energy resilience and security while delivering affordable energy to consumers.

Since March 2021, the government has committed to spend over £9.7 billion on decarbonising buildings. This includes £3 billion to upgrade the energy efficiency of up to half a million homes, saving hundreds of pounds in energy bills per year, and £2.5 billion to decarbonise nearly two per cent of the total public estate per year.

To support the decarbonisation of non-domestic buildings, the government is introducing targeted business rates exemptions for eligible plant and machinery used in onsite renewable energy generation and storage, and a 100 per cent relief for eligible low carbon heat networks with their own rates bill.

Spring Statement announces that these measures will now take effect from April 2022, a year earlier than previously planned.

SIGN UP TO OUR NEWSLETTER

We do not sell our lists, and you can easily unsubscribe if you so wi​sh.

Conclusion

There isn’t really a sense on the FutureBusiness desk that this statement is anything truly dramatic. What could be dramatic, though, is the forthcoming energy security plan.

This might be where realignment of green growth, policy and corporate futures collide, catalysed by the events in Ukraine. Something drastic and brave would seem to be required. What comes next is down to the politicians.

Share:

Related Articles

Trending

What are the Biggest Sustainability Challenges Facing the World Today?
When it comes to issues facing sustainability, there are a variety of areas that need to be addressed,...
How Does Sustainability Affect the Economy?
Sustainability is one of the most frequently heard buzzwords when talking about our future but what is...
Is Positive Discrimination a Good or Bad Thing?
Positive Discrimination in the workplace aims to address historical imbalances by providing preferential...
What is Technological Leadership and What Does it Mean for Your Business?
Technological leadership is one of the most prominent ways of leading from the top, including being involved...

Subscribe to our Newsletter