Press release

Spring Statement 2022: Deloitte head of tax policy reacts

23 March 2022

Amanda Tickel, head of tax policy at Deloitte said:

“Today’s speech was more of a Budget than a Spring Statement, this time switching from raising tax receipts to reducing the burden on taxpayers. This includes a total of £45.9 billion of new tax reduction measures announced, compared to £65.9 billion of tax raising measures announced last Autumn. The Statement was characterised by helping consumers with the cost of living and taking steps towards reaching net zero.

“The most expensive measure of the day was the increase to National Insurance Contributions thresholds. This is forecast to cost £25.9 billion between 2022 and 2027, but we saw no U-turn on the 1.25% rise which was expected to raise £86.6 billion between 2022 and 2027.

“It’s encouraging to see net zero is still in the government’s sights, with the removal of VAT on green home improvements including solar, heat pumps and insulation. However, the Chancellor needs to balance lessening the immediate cost of living with the environmental impact of his move to cut fuel duty by 5p per litre.

“Businesses will have to wait until the Autumn Budget for further measures to incentivise training, innovation and investment. There were welcome announcements extending the scope of R&D further, paired with recognition that UK business expenditure as a percentage of GDP is lagging behind countries like France and the OECD average. This will need to nearly double in the next five years to achieve the government’s R&D investment goal of 2.4% of GDP by 2027. The Treasury will be working with businesses over the summer to develop a more comprehensive plan.”

 

 

Note to editors

You can follow us on Twitter: 

@DeloitteUK for live comment

Deloitte spokespeople

Deloitte has a range of spokespeople available to comment on today’s Budget. They can be reached on 020 7007 3333 or 0207 303 5054 or one of the following numbers:

• Debapratim De - Senior economist (07789 036 944)

• Amanda Tickel - Head of tax policy (07920 270 964)

• Rachel McEleney - Personal tax (07826 891 752)

• Alison Lobb – Corporate tax (07826 952 940)

• James Warwick - Employment tax (020 7303 6924)

• Andrew Clarke – Indirect tax (07824 895 798)

• Katherine Lampen – Climate change/sustainability (020 7303 6924 / 07920 270 964)

• Gerry Biddle – Business rates (07826 952940)

 

About Deloitte

In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.

Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms.

The information contained in this press release is correct at the time of going to press.

For more information, please visit www.deloitte.co.uk.

Contact