CHANCELLOR Rishi Sunak gave his Spring Statement on Wednesday, March 23, and whilst not as in depth as a full Budget it did still contain plenty of information that will affect all businesses.

One of the many benefits of being part of Bridgwater Chamber of Commerce is the access to expert opinion and advice from across a diverse range of business sectors so I have Gavin Maxwell, Partner at Maxwell’s Chartered Accountants and Vice-Chairman of the Chamber to thank for the summary below:

  • National Insurance Contributions rise (NIC) – National Insurance Contributions are set to rise by 1.25% from April 2022 and the earnings threshold has been raised to £12,570 to provide respite to low-income workers.
  • Fuel duty has been cut by 5p to reduce the price of fuel per litre. Reducing the government levy on petrol and diesel will help bring down the cost of living for families and the cost of operating a business.
  • A business rates discount is promised to come into effect in April 2022 for retail, hospitality, and leisure businesses. A typical pub should save around £5,000.
  • The Chancellor promised to cut the basic rate threshold for income tax from 20p in the pound to 19p in the pound by 2024.
  • Employment Allowance will be increased to £5,000 from April 2022 for small businesses.
  • Research and Development (R&D) tax credits will be reformed, and R&D expenditure credit may be boosted, a decision he will make in autumn 2022.
  • The Chancellor will cut rates on business investment this autumn 2022.

    The ongoing energy crisis will see energy bills rocket by nearly £700, once Ofgem’s energy price cap increases by 54% from 1 April 2022, and paired with the ongoing fuel crisis that saw the price of petrol hit an all-time high this month, the cost of living for businesses and individuals alike is becoming increasingly burdensome.
    Ahead of the Chancellor’s announcement, news also broke that inflation hit a 30-year high and with the war in Ukraine further increasing the burden controlling costs and protecting bottom line profit is absolutely key to the success of every business, possibly now more than ever.
    More information on Bridgwater Chamber of Commerce can be seen on our website www.bridgwaterchamber.org.uk

Roger Smith, general manager