Budget Spring Statement 2022 - key measures important for businesses

"To lift our growth and productivity we need the private sector to train more, invest more, and innovate more. People. Capital. Ideas."

Chancellor of the Exchequer, Rt Hon Rishi Sunak MP

It's not quite the Autumn Budget, but the Spring Statement has cemented its place in the Parliamentary calendar as an opportunity for the Government to both respond to and shape the economic environment. With recent Statements and Budgets firmly establishing a COVID-focused response, this was the first in two years to break the mould, Instead, it was heavily influenced by the war in Ukraine and its impact on the UK economy. Below are the key takeaways for businesses in our sector and a link to the full Spring Statement.

Key measures important for business include:

• The business rates multiplier will be frozen in 2022-23. Eligible retail, hospitality, and leisure businesses will also benefit from a new temporary 50% Business Rates Relief.
• The temporary £1 million level of the Annual Investment Allowance was extended to 31 March 2023.
• There'll be a further increase in the Employment Allowance from next month, meaning eligible employers will be able to reduce their employer NICs bills by up to £5,000 per year.
• Previously announced measures to support buildings to de-carbonise will be brought forward to next month, a year ahead of previous plans. These include targeted business rates exemptions for eligible plant and machinery used in onsite renewable energy generation and storage, and a 100% relief for eligible low-carbon heat networks with their own rates bill.
• R&D tax relief reform - from April 2023, all cloud computing costs associated with R&D, including storage, will qualify for relief. As there are cases where it's necessary for R&D to take place overseas, legislation will be introduced so that expenditure on overseas R&D activities can still qualify in certain circumstances.
• The Government will examine whether the current tax system - including the Apprenticeship Levy - is incentivising businesses to invest in the right kind of training.
• Fuel duty will be cut by 5p per litre from 6pm on 23 March until March 2023.
• The basic rate of Income Tax will reduce to 19% from April 2024.

You can read the full Spring Statement documents on the HMT website by clicking here.