June 22, 2024

Lloyd Powell, Head of ACCA Cymru / Wales comments on the Chancellor’s Spring Statement

Lloyd Powell, Head of ACCA Cymru/Wales, has commented on yesterday’s Spring Statement by the Chancellor:

“The Chancellor had the chance with this Spring Statement to prioritise supporting Wales’ small and medium businesses through the current onslaught of cost increases.

“While some positive steps were announced, many small businesses would have wanted to see more immediate support. Changes to the Employment Allowance and National Insurance Contribution thresholds are both welcome steps, though we called for the NICS increase to be postponed by a year.  Many small firms will welcome the fuel duty cut announced but are likely to be frustrated by the lack of help on business energy bills.

“In conclusion, the Chancellor has tried to find manoeuvrability to tackle rising costs and increase the UK’s growth rate. We would have hoped for a little more to support individuals and businesses to cope with high costs and tax increases they face. 

“But as the Chancellor says, tax cuts need to be paid for and the future promise to cut the basic rate of income tax may go some way to do that – but it’s not a panacea. It’s clear that thresholds are not keeping up with inflation and so this needs careful monitoring with strong policy decisions going forward and announced at the Autumn Budget.”