The Treasury has scrapped plans for an Autumn 2020 Budget in order to focus on its response to the coronavirus pandemic.
Now is not the right time to outline long-term plans
The decision to scrap the budget comes as no surprise as the Government typically outlines the state of the country’s finances in the Budget, and proposes new tax changes.
It would have been difficult for the Chancellor to announce tax changes in the Autumn which are aimed at recouping the cost of the pandemic, whilst the country is still suffering from the economic effects of the first wave.
A Treasury statement said: “As we heard this week, now is not the right time to outline long-term plans – people want to see us focussed on the here and now. So we are confirming that there will be no Budget this Autumn.”
Giving people reassurance and offering businesses the help they need has always been at the forefront of the Chancellors plans to support the economy.
The decision to cancel the Autumn Budget is a weight off many people’s shoulders and removes the worry of upcoming tax changes or reforms which could put an additional burden on individuals and businesses who may be struggling.
There will however be a spending review which will be published in the Autumn and will set out the governments spending plans for the parliament.
The review will set UK Government department’s resource budgets for the years 2021/22 and to 2023/24 and capital budgets for the years 2021/22 until 2024/25.
The 2020 Comprehensive Spending Review will focus on strengthening the UK’s economic recovery from COVID-19 and improving outcomes in public services including supporting the NHS and taking steps to cut crime. More information about the CSR and the other priorities can be found on the Government’s website.
The Chancellor will unveil his ‘Winter Economy Plan’
The chancellor has been facing mounting pressure to announce the Government’s plans for the end of furlough – and what it will do next.
The landmark scheme was introduced in March to cover 80% of employee’s salaries in a bid to protect jobs and livelihoods during the coronavirus pandemic. Since August, the government has been gradually winding down the scheme which is due to end on the 31st October.
The chancellor is said to be weighing up a new scheme as part of a wider emergency support programme to help businesses survive a second wave or coronavirus.
Chancellor Rishi Sunak has announced he will reveal his ‘Winter Economy Plan’ to parliament on Thursday afternoon after the Government confirmed there will be no Budget before the end of the year.
“As our response to coronavirus adapts, tomorrow afternoon [Thursday 24th September] I will update the House of Commons on our plans to continue protecting jobs through the winter,” he tweeted on Wednesday.
Keep an eye on our blog for the latest news
Keep an eye on our blog for all the latest information and legislation changes that affect contractors and freelancers in the UK. We take an active interest in the economy and changes to government legislation and as soon as more information is available, we will share it.
Founded by an IT Contractor in 1998, Churchill Knight has become one of the most respected contractor accountants in the UK. We’ve helped over 20,000 contractors with their accountancy requirements. As well as our accountancy services, we also have an industry-leading PAYE umbrella company and dedicated in-house personal tax department. Whichever service you choose, you can move forward with complete peace of mind. We are proud of the reputation we’ve built over the years, and our FCSA accreditation proves how committed we are to compliance within our sector. Keep reading…