Autumn Budget 2017 Preview
Please note this blog post was published over 12 months ago and so may not include the most up-to-date information, for example where regulation around investing has changed.
Philip Hammond, the Chancellor of the Exchequer, presents his Autumn Budget to parliament on November 22.
This latest budget is eight months removed from Hammond’s first Budget in March. On that occasion, he was forced to backtrack quickly on his planned National Insurance contributions for the self-employed. He’ll be looking for a more positive reaction this time, with most commentators expecting a straightforward Budget which won’t rock the boat.
The reason for this second budget of 2017 is the Chancellor’s decision that it makes more sense to hold the event at the end of the year going forward. A Spring Statement will then take place in 2018, with the Budget becoming an annual autumn event.
The Budget will take place immediately after Prime Minister’s Questions on Wednesday November 22, with Mr Hammond delivering his speech followed by a debate.
The event is his opportunity to outline his plans for taxation, and the government are likely to stick to their aim of lowering the deficit and balancing their books. As we are only half a year removed from the previous Budget, it will be interesting to see if there are any major changes on the Chancellor’s agenda. Key issues could involve housing plans and tuition fees, which were things that came up during the Conservative’s 2017 General Election campaign. There is speculation the budget could be designed to appeal to younger voters, particularly if tuition fees are frozen and stamp duty is scrapped for first time buyers.
Brexit is also likely to be a feature of the Autumn Budget, with “no deal” scenarios potentially being spelled out.
Our Senior Partner, Daniel Harrison, believes the best budget would be one that reverses some of the recent Pension allowance reductions. However, it could be the case that the Chancellor looks to raise money with another raid on Pension annual and lifetime allowances. The True Potential Investor perspective is that the Chancellor should leave pensions well alone, because we believe they need a period of stability and calm. Constant changes further undermine Pensions credibility and consumer confidence.
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