On Tuesday 13 March The Chancellor Philip Hammond presented his first Spring Statement. His speech provided an update on the economy and a response to the Office for Budget Responsibility forecasts. In addition he launched consultations on various aspects of the tax system.
Chancellor Philip Hammond has implemented some fundamental changes to the UK fiscal timetable. In the 2016 Autumn Statement, the Chancellor announced that he would be introducing a new Budget timetable, which would see the main annual Budget moving from its traditional spring setting to the autumn and the Autumn Statement being replaced by a Spring Statement. The first Autumn Budget was presented in November 2017.
The new tax policy process
The general process of developing tax policy will remain the same but there have been significant changes to the timescales for policy making and consultation. The government hopes that the new system will allow more time to scrutinise and consult on draft tax legislation before it is introduced. The new timing of the Autumn Budget will allow the announcement of most new measures well in advance of the tax year in which they are due to take effect. The Spring Statement also offers the opportunity for the government to consult during the early stages of policy making, and publish calls for evidence on long-term tax policy issues.
Generally under the new system, measures announced in the Autumn Budget will be consulted
on during the winter and spring. Draft legislation will be published in the summer, ahead of the introduction of the Finance Bill in the winter. This will then receive Royal Assent the following spring.