On 23rd March 2022 Rishi Sunak announced his Spring budget statement to tackle the cost of living. With a rise in inflation the highest it has been in 30 years and energy bills soaring, patron’s of Made in the Midlands Prime Accountants group held a live stream via the groups social media to summarise what this means for manufacturers.
Based in Birmingham, Prime Accountants Group is an independent firm of chartered accountants, forensic accountants, business and financial advisors. Prime pride themselves on simplifying business for their clients, allowing them to spend more time doing what they do best.
Jamie Skelding, Finance Director at Prime Accountants Group, highlighted the points made in Rishi's statement, outlining the main statements that apply to business owners. Jamie started by pulling out the 6 key headlines:
- A 1% cut in income tax rates
- National insurance thresholds will increase
- 5% cut in fuel duty
- Increase in employers allowance
- Measures focused on investment in business
- Inflation is at 6.2% will rise to 7.5 before going back under control in 2024
Rounding up the statement in two parts - Business and people, Jamie pointed out that Brexit, the pandemic and war in Ukraine has all put pressure on the public purse. The expected fuel duty cut by 5 pence, seems insignificant but will help ease transport costs for businesses owners. He also mentioned the Employers allowance, a caim that can be made through payroll if businesses have a tax bill of less than £100,000, will mean employers can claim up to £5,000 for this tax year and previous ones.
He continued by pointing out that Rishi sees the solution as investment and growth in business, splitting this into three segments - people, ideas and capital and how the government intends on supporting these three aspects to help build the economy. As for people - the national insurance threshold increasing to over £12,000, matching the tax threshold, means anyome earning in these lower regions will pay no tax or national insurance at all.
Find out more about Prime’s summary by watching the video above.