6 ISSUES FOR JUST £6 Subscribe to Business & Professional Life today CLICK HERE

Budget 2018: What can we expect from the Chancellor’s speech?

PUBLISHED: 10:38 22 October 2018 | UPDATED: 10:38 22 October 2018

Randall & Payne's Budget Day Networking Lunch

Randall & Payne's Budget Day Networking Lunch


James Geary, Corporate Tax Manager at Randall & Payne Accountants in Cheltenham, discusses what could be Chancellor Philip Hammond’s most crucial budget yet

Philip Hammond will deliver his Budget speech earlier than usual on Monday October 29 instead of the predictable Wednesday, as it’s widely believed that his advisers warned against choosing Halloween as the date due to the potential for unsavoury headlines such as “Hammond’s House of Horrors”. However, Monday or Wednesday we are pleased to be hosting our business leaders’ networking event at Kingsholm to discuss his announcements with immediate consideration.

All in all Mr Hammond would appear to have very little room to manoeuvre, but what is certain is that this budget will be of great interest both to those in the UK and overseas, and could be his most crucial budget yet.

Particular areas of taxation and duty that may well feature include the following:

Fuel Duty – there have been reports that the eight year freeze may end this year, however, the Prime Minister used her party conference speech to confirm that the freeze would continue again, so going back on such a stark statement is unlikely. A continued freeze could cost the Exchequer an eye-watering £38 billion over the next three years

Digital Services Tax – there has been significant talk about a new tax on digital businesses, particularly targeted at online retailers like Amazon, as well as in respect of advertising revenues received by companies like Facebook. These taxes have been discussed at international level as it is important that we have a joined up approach worldwide, to avoid these large companies simply relocating their operations to avoid them. Mr Hammond has indicated that the UK could “go it alone” on this new tax.

Inheritance Tax – a number of sources have reported both possible increases and decreases to this tax and we could see implementation of some of the findings of the Office of Tax Simplification who recently carried out a report into the tax as a whole. Areas that could be targeted to increase the tax may well be around eligibility for Business and Agricultural Property Reliefs, to tighten up the criteria for qualification bringing less direct business interests back into the tax net.

Capital Gains Tax – many sources predict an attack on Entrepreneurs’ Relief which affords a generous 10% tax rate on an individual’s first £10 million of business gains. However, sources have been predicting this for years and in our view this is too important a relief for any sweeping changes. More likely would be an increase in Capital Gains Tax rates generally, currently 28% for residential property and 20% for other assets.

Pensions – barely a year goes by without more tinkering with the rules around pensions. He may “bite the bullet” and restrict tax relief on pension contributions to basic rate tax only.

Corporation Tax – evidence shows that tax receipts are at record levels, showing that the strategy of lowering rates is making the UK more attractive for business. The rate is due to drop from 19% to 17% in April 2020, and while it is possible that this change could be accelerated, as Brexit negotiations continue, it is unlikely as it could be seen by other nations as distorting international competitiveness even further.

Insurance Premium Tax – this has already been increased three times from 6% to 12% over the last three years, and many predict that it could rise again.

Off-payroll working in the private sector – following the changes to the public sector, it is expected that these will also apply to private sector businesses from April 2019. This will result in a significant tax increase both for owners of personal service companies and for the companies that contract them.

Income Tax – perhaps the most controversial move that might be implemented would be to abandon the 2015 election promise to raise the basic tax allowance to £12,500 and the higher rate income threshold to £50,000 by 2020. This is the most valuable tax relief in the UK system and freezing these thresholds could raise an additional £2 billion per year for the Exchequer.

We consider it unlikely that all of the above will happen, but these are probably the principal options Mr Hammond will have been considering.

If you want to know more about the Budget Day Networking Lunch, please contact Jo Kline on 01242 776000 or email Jo.Kline@randall-payne.co.uk or visit randall-payne.co.uk.


Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files

Please log in to leave a comment and share your views with other Cotswold Life visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Cotswold Life staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Cotswold Life account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

More from Cotswold Life


Swan Lake. We know the music, we know the iconic imagery of the beautiful ballerina dressed as a swan, but I’m guessing that without reading the libretto in the program, most people don’t know the story. Which is why the audience relies on the dancers to tell us.

Read more

Tom and Louise are being joined by other new academic appointments that have been made as part of the RAU’s £2.5 million initiative to help meet the future needs of the land management and agri-food sectors

Read more

“To win this prestigious award is a real compliment to the wider team in Renishaw’s manufacturing services operation, particularly when we consider the achievements of the other excellent shortlisted companies.”

Read more
Yesterday, 17:16

Stepping up to receive the world’s first MBA Leading Business degrees at the ceremony were Sarah Bryars, Chief Executive of Target; Luke Freeman, Joint Chief Executive of MF Freeman; and Linsey Temple, Chief Executive of Gloucestershire Engineering Training

Read more
Yesterday, 17:04

“I am thrilled to see InfoSec People win this fantastic award which is a testament to the brilliant team we have built in the past few years.”

Read more
Yesterday, 16:36

After a stress-free shopping experience browsing designer brands this Christmas? Look no further than the luxury offerings of Mailbox in Birmingham

Read more
Yesterday, 10:24

This year sees the 40th anniversary of the publication of Raymond Briggs’ original picture book The Snowman. With three performances of the animated film – with live orchestra – coming to Gloucester Cathedral next month, we thought we’d catch up with Rachel Whibley, managing director of Carrot Productions (and occasional snowman), to find out more...

Read more
Mon, 14:10

It’s the season of terrible puns, magic lamps, and generous genies: Aladdin, the all-new panto at the Everyman, has been written by none other than legendary Blue Peter presenter Peter Duncan, and stars everyone’s favourite clown, Tweedy. The Barnard family from Nailsworth - mum, dad, Harriet (12) and Lewis (6) - made a Wishee (Washee) for tickets; grabbed their car (Window Twan) keys; and dashed off to see A Ladd In Cheltenham

Read more
Mon, 13:45

Crispy, frosty days and perhaps even a dusting of snow, winter is a magical time in the Cotswolds. If you’re thinking of tying the knot during this beautiful season in the region, here are six winter wedding ideas to help you start planning your special day

Read more

Christmas in the Wilson household is a heartwarming, traditional family affair

Read more
Mon, 13:15

Tracy Spiers takes an impressive, if hypothetical, budget on a shopping spree in Cheltenham’s independent stores

Read more
Mon, 13:09

Veganism is the latest food trend to hit the Cotswolds but it’s something we can all enjoy a bite of

Read more
Mon, 12:23

Get out and enjoy seasonal celebrations with a Cotswold twist

Read more
Mon, 12:21

The weekend is fast approaching and for those still deciding how to spend their Friday through to Sunday, we pick 5 of the best ways to spend your weekend in the Cotswolds

Read more

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

Topics of Interest

Food and Drink Directory A+ Education

Subscribe or buy a mag today

subscription ad

Local Business Directory

Property Search