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INTRODUCTION ........................................................................................................................................ 3

KEY TAKEAWAYS & ANALYSIS ......................................................................................................... 6

BUSINESS & EMPLOYMENT .............................................................................................................. 10

CULTURE, MEDIA & TELECOMS ..................................................................................................... 14

EDUCATION & SKILLS ......................................................................................................................... 18

ENERGY & ENVIRONMENT .............................................................................................................. 21

FINANCIAL SERVICES, INSURANCE & PENSIONS ............................................................... 25

HEALTH, SOCIAL CARE & LIFE SCIENCES ................................................................................ 28

TRANSPORT & INFRASTRUCTURE ............................................................................................... 30

HOUSING .................................................................................................................................................... 34

PUBLICATIONS, DOCUMENTS & CONSULTATIONS .......................................................... 39

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Ahead of the Spring Statement, Chancellor Philip Hammond was careful to downplay expectations

and stress that it was “not a major fiscal event”. He largely met those expectations today.

Nevertheless, the tone of his speech was positively upbeat – or, as he himself put it, “Tigger-like”.

Boosted by improved economic projections from the Office for Budget Responsibility, he

emphasised the “balanced approach” he had taken since 2016 but also signalled a possible

loosening of the purse strings come the autumn.

Lest his audience mistook this as a sudden turn towards bombast and theatre, ‘Spreadsheet Phil’

remained true to form in reaffirming his pledge to use the Budget to lay out an overall path for

public spending for 2020 and beyond, with a detailed Spending Review in 2019.

In addition to signalling the future path for public spending, the main announcements in the

Statement related to the allocation of previously announced funds and the launch of various

consultations and calls for evidence.

This slow and steady approach to policymaking is unlikely to appeal to everyone, least of all the

Shadow Chancellor. In his response to the Statement, John McDonnell accused his counterpart of

“complacency” and said that the Government needed to “act now”.

In particular, he laid the UK’s productivity problem at the door of the Government and argued that

the gap between the UK and other OECD countries was because of lower levels of state investment.

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He also highlighted the squeeze on council funding, and called on Conservative MPs to rebel

against the Government in favour of motions later that day to annul a statutory instrument related

to free school meals.

Mr Hammond will face attack from many sides. The BBC notes that organisations like the PwC had

suggested that the UK would continue to underperform in comparison to other major economies,

and largely dismissed the sunny optimism of the Chancellor’s remarks.

Meanwhile, the Opposition’s could profit from continued dissatisfaction at austerity and make hay

from the absence of any major announcement.

Many in his own Party may struggle against the Chancellor’s unwillingness to participate in the

theatre of politics and make headline-grabbing announcements, though their attacks may be

blunted by the improved economic forecast. Nevertheless, if funding troubles in the NHS or local

government worsen then the Chancellor may regret the decision to defer action until the autumn.

OBR forecasts

In its March 2018 Economic and Fiscal Outlook, the Office for Budget Responsibility (OBR) explains

how “only small revisions” have been made to its GDP forecasts since it offered its previous outlook

in November.

After noting that economic growth for 2018 was now forecasted to stand at 1.5%, the OBR

highlighted its surprise at the upturn in productivity growth which, it said, had “been much

stronger than expected”. However, Mr Hammond did not dwell on this and, instead, only spoke

about tackling the UK’s “long-standing productivity challenges”. The fact that the OBR, at the same

time, warned that productivity growth data around 2011 had proven to be “erratic” and had “soon

reversed” might offer an explanation as to why.

Elsewhere, Chancellor Philip Hammond also spoke about the upcoming Autumn Budget and the

potential fiscal headroom he might have available to him. “If, in the Autumn, the public finances

continue to reflect the improvements that today’s report hints at… I would have capacity to enable

further increases in public spending and investment in the years ahead”, he declared.

In contrast, in the Executive Summary of its Economic and Fiscal Outlook, the OBR says that “the

outlook for the economy and public finances looks broadly the same” since it offered its November

forecast. It points out that although the UK economy “has slightly more momentum in the near

term”, the “Government’s headroom against its fiscal targets is virtually unchanged”.

As anticipated, the OBR looked in more detail into the consequences for the UK resulting from its

departure from the EU. With the December 2017 Joint Report agreed between UK and EU

negotiators at its disposal, the OBR has now estimated that the cost of the so-called Brexit divorce

bill will total £37.1bn.

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The OBR also assessed which of the Government’s fiscal targets it is expected to meet. Addressing

one of these – the Conservative Party’s 2017 manifesto commitment to achieve “a balanced budget

by the middle of the next decade” – the OBR concludes that the Government’s ability to meet this

“appears challenging from a variety of perspectives”.

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Health and social care

The absence of any notable spending announcement can perhaps be most keenly seen in the area of

health and social care, where significant funding issues appear to be in the news on a daily basis.

The Chancellor’s only reference to health in the Statement was to disagreements around pay for

workers in the health sector.

Reports suggest that proposals being negotiated could include staff losing a day’s holiday in order

to gain a real terms pay rise. The Shadow Chancellor labelled this mean-spirited, accusing Mr

Hammond of not listening to doctors, nurses, families, and even his own councillors.

Many charities and campaign groups have said this was a missed opportunity, though the

Chancellor’s pledge not to use the Statement for any major spending commitments limited his hand

somewhat. Moreover, he highlighted that there had been a significant increase in spending for in

the Budget only a few months ago. That being so, not listening to loud calls for extra funding could

very easily come back to bite the Government between now and the next Budget.

Transport and air quality

Unlike previous budgets and statements, in today’s Spring Statement the Chancellor also did not

make a large number of funding announcements for transport projects across the country.

The Chancellor did announce that local councils would be able to apply for funding from the

Transforming Cities Fund. £840m of funding will be available to improve transport in English cities.

While the announcement has been broadly welcomed, it is striking that areas with metro mayors

have automatically been allocated funding while those without metro mayors will have to compete

with other cities to secure local transport funding.

The other main announcements were on air quality, where the Government have said they will

launch consultations on reducing taxation for low emission vans and on the impacts of red diesel.

These announcements have been welcomed, but a number of stakeholders have called for the

Government to take further action to improve air quality.

Skills and apprenticeships

Also missing from today’s Spring Statement were major announcements on skills and

apprenticeships. While the Government is now to consult on the extension of tax relief for training

by employees and the self-employed to support upskilling and retraining, this was original

announced in the Autumn Budget 2017. Moreover, no reference was made to the much-maligned

Apprenticeship Levy. Many across the political spectrum welcomed the Levy’s principle to increase

the number of apprenticeships, but argued that poor delivery has impacted the results.

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Mr Hammond made two announcements of some significance in the field of education and skills.

With a stated aim of building a Britain fit for the future and an economy that worked for everyone,

the Chancellor announced that £50m would be made available to help employers prepare for the

rollout of T- level work placements from next week to ensure people had the skills needed to meet

the challenges ahead.

Building on this announcement, the Chancellor further announced a £29m construction skills fund

would open for bids to fund up to 20 construction skills villages around the country, before

crucially announcing £80m of funding to support SMEs with engaging an apprentice. This last

announcement was the most widely welcomed by businesses and training providers, struggling

with the implications of the Apprenticeship Levy.

However, calls for further funding for education and schools ahead of the Statement were left

unheeded, with the emphasis on skills and technical qualifications echoing commitments already

made by the Government in the Autumn Budget.

It seemed consultations were the word of the day for the Spring Statement, with the Treasury

launching numerous consultations on tax policy. The Government is calling for evidence on plans

for corporate tax, online platforms, business rates and VAT among others.

With the Government coming under fire in recent months for the proposed closures of LINK ATM

machines across the country, it has also published a consultations on cash and digital payments in

the new economy. The consultation will explore how the Government can support digital

payments, whilst also consulting as to whether there are sufficient ATM’s available for those

wishing to use cash.

Digitalisation and the digital economy

Digitalisation and the digital economy have been at the forefront of the policy agenda over the

past several years. The Government is now addressing the impact and changes brought by the

fourth industrial revolution, but is still seen by stakeholders to be reacting to the external pressure

rather than setting the policy agenda.

The Spring Statement has also allocated the first wave of funding, dedicated to improving the UK’s

digital connectivity, which is likely to help rural and remote areas and overjoy the Conservative

Party’s backbenches

Housing

One area where there were a number of announcements was housing, with £1.67bn for London and

a £100m grant for the West Midlands. While the extra funding has been broadly welcomed, London

Mayor Sadiq Khan criticised the delay in agreeing the funding for London and called for further

investment in the capital.

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The Chancellor also announced a number of consultations relevant to the construction sector, with a

proposed new consultation on late payments being welcomed by construction stakeholders. Extra

funding for skills in the construction sector has also been welcomed.

Today also saw Sir Oliver Letwin provide an update on his review of build out rates. The update

suggests that his review will argue that the fundamental driver of build out rates is the ‘absorption

rate’, which is the rate which newly constructed homes can be sold into the local market without

materially disturbing the market price. The remainder of his review is likely to look at ways to

change the absorption rate.

With a smaller than usual statement, many have paid closer attention to the Office for Budget

Responsibility’s (OBR) economic analysis. The analysis includes a number of interesting points on

the Government’s housing policies that have been seized upon.

Shadow Housing Secretary John Healey has drawn attention to the OBR analysis of changes to

support for mortgage interest, which show that only ten per cent of people have agreed to the

Government’s changes. Over the coming days it is likely that the Opposition will seek to draw

attention to other parts of the OBR’s analysis.

Energy

The key headline for energy policy in this Spring Statement is buried away in page 119 of the OBR’s

economic forecast, where it has been announced that environmental levies will be £500 million a

year lower in 2012-22 and 2022-23.

This is of note, because the Autumn Budget noted that there will be no new low carbon electricity

levies until the “burdens” of such costs “fall in real terms over a sustained period”, which will be

around 2025.

The Government has also allocated £185 million in funding for BEIS in 2018-2019 to “prioritise the

essential programmes to realise the opportunities from EU exit.”

Environmental policy

Meanwhile, environmental policy took centre stage at the Spring Statement, with the Chancellor

announcing a call for evidence to tackle single use plastic that will “look at the whole supply chain.”

Furthermore, the Government is committing £20 million now to "help universities and businesses

deliver solutions" on tackling plastic waste. This builds on the recently announced 25 Year

Environmental Plan, which seeks to scrap avoidable plastic waste by the end of 2042.

Mr Hammond also announced another consultation on reducing Vehicle Excise Duty for the

cleanest vans, in order to “help the Great British White Van driver go green.”

While these announcements are welcome, many on the Labour benches shouted “get on with it” as

the Chancellor duly listed this new raft of environmental consultations to the House. Indeed, the

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consultation on plastics is not new, with the Autumn Budget noting that “The government will

launch a call for evidence in 2018 seeking views on how the tax system or charges could reduce the

amount of single-use plastics.”

Although welcome, some will be saying it is time the Government translates words into action on

the environment.

Business rates

Business rates have been a topic that has continued to grab the attention for the last few fiscal

announcements, and the 2018 Spring Statement was no exception. Even the one comment made by

the Chancellor Philip Hammond that the Government would bring forward the next property

revaluation for business rates by one year to 2021 was enough to grab attention.

The Government has faced repeated criticisms for its action on business rates and calls for the

system to be re-evaluated. Mr Hammond most recent announcements builds on his 2017 Autumn

Budget, which saw the frequency of property revaluations increased from every five years to every

three years. Today’s announcement can be seen as an attempt to rebut the criticisms that the

Government has faced on business rates. While many have welcomed the changes to business rates,

many argue that this is does not go far enough and that the system needs to more radical change.

Brexit

Skills and productivity remain some of the biggest issues for businesses, so too does Brexit. Whilst

the formal Spring Statement’s only notable mention of Brexit was the allocation of the £1.5bn extra

funding for Government departments, the OBR’s analysis that the UK’s divorce bill with the EU

would cost £37.1bn made for a more interesting read.

This figure is based on “phase 1” agreement, and almost half this bill relates to Britain’s

commitments under the current EU budget that ends in December 2020. It was further found that

the Brexit could free up £3bn a year by 2021–22, but such gains would most likely to offset by

negative impacts of lower immigration and productivity.

Other noteworthy figures contained in the OBR’s analysis include findings that Brussels pension

liabilities would last to 2064 and looking at the overall predicted economic growth figures are still

subject to Brexit-related uncertainties. Many in the Opposition called in to question the figures

surrounding Brexit, and Shadow Chancellor John McDonnell accused the Government of not

modelling options around Brexit. However, while Brexit negotiations continue and the form of the

final trade agreement remains unknown, it will be hard to judge what the economic impact of Brexit

will be.

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Summary

Opposition response

Stakeholder reaction

Business Rates

• The Spring Statement announced that the Government would bring forward the next

property revaluation for business rates by one year to 2021.

VAT

• The Spring Statement announced a call for evidence to explore whether the design of the

VAT threshold could better incentivise growth. It will also explore the effect of the current

threshold on small businesses.

• Another consultation was announced today on a proposed split payment model to reduce

online VAT fraud and improve how VAT is collected.

• The Government will also explore how online platforms could work with HMRC and

taxpayers to help people who make money through the platforms understand and meet

their tax obligations.

• In the coming months, the Government will publish a response to a consultation on changes

to the VAT treatment of vouchers. This change will amend VAT law to ensure that when

customers pay with vouchers, businesses accounts for the same amount of VAT as when

other means of payments are used.

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Tax

• In the coming months, the Government will publish a consultation on how to simplify the

tax treatment of short-term business visitors from the foreign brand of a UK company, to

ensure the UK is an attractive location for business headquarters.

• In addition, the Government is to publish the consultation into HMRC’s process for risk-

profiling large businesses, to improve HMRC’s Business Risk Review process, reflecting and

further enhancing the shift in large business compliance behaviours.

Skills

• The Chancellor said in the Spring Statement that the Government would ensure people have

the skills they need to seize the opportunities ahead. A consultation has been launched on

the extension of tax relief for training by employees and the self-employed to support

upskilling and retraining.

Small Business and Entrepreneurs

• The Spring Statement announced the launch of a technical consultation on changes to

Entrepreneur’s Relief to ensure that it does not discourage entrepreneurs from seeking

external finance for their companies.

• A consultation has also been launched on creating a fund structure within the Enterprise

Investment Scheme for investment in innovative knowledge-intensive companies.

Productivity

• In the coming months, the Department for Business, Energy and Industrial Strategy will

publish a call for evidence to understand how best to help the UK’s least productive

businesses to learn from, and catch up with, the most productive.

Brexit

• The Chancellor announced the Treasury would publish departmental allocations of over

£1.5bn of Brexit preparation funding for 2018-19.

• Chief Secretary to the Treasury Liz Truss published a written statement that sets out the full

allocated funding to departments in 2018-19.

• The Office for Budget Responsibility’s analysis of the EU financial settlement estimated it

will cost the UK £37.1bn.

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Business Rates

Shadow Business Secretary Rebecca Long-Bailey described the announcement to bring forward

business rates by a year as “not good enough” and called for the Government to “fundamentally

reform the business rates system to help British business thrive”.

The British Chamber of Commerce said: “Businesses will be encouraged by the Chancellor’s report

on the UK’s fiscal health, with lower projections for the deficit and falling national debt, as well as

his full-throated defence of the market economy and the role of the private sector in delivering

prosperity”.

Chief Executive of EEF Stephen Phipson said: “The absence of further tuning of tax and spend

policies makes sense to businesses at this juncture as does the commitment to strike a balance

between paying down the deficit and targeted investment spending”.

TUC General Secretary Frances O’Grady said: “This was not the jumpstart the British economy

needed. The Chancellor had nothing to say to workers hit by falling wages, to communities where

there are few decent jobs”.

Senior Economist at the Institute of Directors Tej Parikh described the Spring Statement as an

“upbeat and pro-business speech”.

Business Rates

The British Chamber of Commerce said: ““We are pleased that the government has listened to our

calls to make revaluations more frequent. Switching to a three-year-cycle will go some way to

reducing the huge changes in rates bills that clobber firms across the UK, and enable them to plan

their growth strategies with greater confidence”.

CBI Chief Economist Rail Newton-Smith said: “the impact of the out-dated Business Rates system

continues to be an Achilles’ heel for many businesses, so it’s absolutely right to fast forward

revaluations”.

Chief Executive of the British Retail Consortium Helen Dickinson OBE welcomed the

announcement on business rates and said it was a “step in the right direction”.

Productivity

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Chief Economist of the CBI Rail Newton-Smith said: “The Chancellor is right to recognise the

importance of this to our future productivity performance”.

Late Payments National Chairman of the Federation of Small Businesses (FSB) Mike Cherry said: “The Chancellor

is absolutely right to commit the government to eliminate the scourge of late payments”. Apprenticeships

The British Chamber of Commerce said: “While more funding to support small businesses seeking

to employ apprentices is welcome, urgent action is needed to reform and improve the

apprenticeship levy – which is currently failing both businesses and the people they want to train”.

Senior Economist at the Institute of Directors Tej Parikh said: “Hopefully, the outcome of the

Consultation will provide a sufficiently generous but focussed new tax relief for those individuals

who do not already benefit from courses provided by their employers”.

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Summary

Opposition response

Stakeholder reaction

The digital sector

• Corporate tax and the digital economy - The Government has updated its position paper,

published in the Autumn Budget, to reflect the feedback it has received from various

stakeholders. The Government has set out its views on the challenges posed by the digital

economy for the corporate tax system and its preferred solutions.

• Cash and digital payments – The Government has announced a consultation on the role of

cash and digital payments in the new economy. The Government has launched the

consultation in order to better understand the impact of transitioning from cash to digital

payments, and the impact this has on different sectors, different regions, and different

demographic groups.

• Online platforms and tax compliance – the Government has announced a consultation into

how online platforms could work with HMRC and taxpayers to help people who make money

through the platforms understand and meet their tax obligations. The Government recognises

that some people who earn money through online platforms and do not have an employer as

an intermediary between them and HMRS, may find it difficult to understand their tax

obligations.

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Research and Development

• The Government is consulting on the introduction of a new approved fund structure within

the Enterprise Investment Scheme, with the possibility of additional incentives to attract

investment. Such a fund structure would be focused on mainly investing in knowledge-

intensive companies. This consultation outlines and seeks views on possible elements and

constraints of such a fund structure, while also seeking to better understand the capital

requirements of innovative knowledge-intensive companies.

Telecoms

• In the Autumn Budget 2017, a £190 million Challenge Fund was announced to help roll-out

full-fibre to local areas – providing the fastest, most reliable broadband to more homes and

businesses. In his Spring Statement, Mr Hammond allocated the first wave of funding,

providing over £95m for 13 areas across the UK. Armagh City, (including Banbridge &

Craigavon), Belfast, Blackpool, Cambridgeshire, Cardiff, Coventry (including Solihull &

Warwickshire), The Highlands, London, Manchester, Mid Sussex, North Yorkshire,

Portsmouth, and Wolverhampton have been announced as the successful bidders for the

£95m allocated to successful projects.

Tourism

• The Government has announced a consultation on VAT, Air Passenger Duty (APD) and

tourism in Northern Ireland. The Government is now seeking evidence that demonstrates

the significance of any impacts that VAT and/or APD have on tourism, or that helps show

how VAT and/or APD might be used to support the growth of the sector in Northern

Ireland.

Departmental funding

• The Treasury has allocated funding to the Department for Culture, Media and Sport as

follows in 2018-19: £26.2m

Britain and the 4th industrial revolution

Labour Shadow Chancellor John McDonnell said Britain has the lowest rate of industrial robot use

in the OECD.

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Mr McDonnell said that the Government is not investing enough in Artificial Intelligence,

highlighting that the UK is investing just £75m, which is less than a tenth of the US Government’s

commitment.

Antony Walker, Deputy CEO of techUK said: “The forecasts show that the UK is coming to the

end of the Government’s deficit reduction strategy. But, many businesses will be concerned that the

UK is forecast to grow more slowly than many competing economies around the world. As a result,

we need to stay focused on maintaining digital investment to drive productivity and growth.

In a speech that was intentionally thin on new fiscal announcements, we welcome the Chancellor’s

measures on tech and innovation, in particular, encouraging cashless and digital payments. We look

forward to reviewing proposals to make it easier for businesses to deal with VAT on online sales.

The announcement of the first 50 per cent of money allocated in the November Budget for the

rollout of broadband shows ongoing commitment to concrete steps towards the delivery of

improved digital infrastructure“.

Rain Newton-Smith, CBI Chief Economist said: “The UK cannot move on taxation in the digital

age in isolation, so the Chancellor is spot on to work in lock-step with the international community

to develop an approach that crosses borders and sectors.

“Many British businesses are at the cutting edge of innovation, but others need a helping hand to

take on the tried and tested technologies that drive growth. The Chancellor is right to recognise the

importance of this to our future productivity performance.

“Great businesses act like magpies, collecting new ideas to boost productivity. But like ostriches,

some can bury their heads in the sand and ignore the opportunities in front of them. The

Government and businesses will need to work together across sectors and supply chains to spread

best practice and make sure magpies win the day.”

British Chamber of Commerce released a statement: “A far stronger push is needed to fund and fix

the fundamentals here in the UK over the coming months, and business wants the Chancellor to use

his Autumn Budget to double down and spend to improve digital connectivity, deliver further road

and rail improvements, strengthen the UK’s energy security and build more houses. Existing plans

alone are not enough.

“The OBR is right to highlight the risk of a disorderly Brexit, as a sudden departure from the EU

would be likely to trigger a marked weakening in economic conditions.”

Association of Licensed Multiple Retailers’ (ALMR) Chief Executive Kate Nicholls said: “A focus

on taxing digital businesses is welcome but it needs to also tackle inequalities in business rates

between digital companies and high street operators. If that is not addressed then businesses will

continue to struggle against crippling rates bills, and jobs and investment will be at risk.

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UKHospitality will continue to push the Government to deliver on their promise of root and branch

reform.”

Association of Convenience Stores’ (ACS) Chief Executive James Lowman said: “One of the new

consultations launched in the Spring Statement will look at the future of cash and digital payments.

The Government have reaffirmed that the Payment Systems Regulator will hold LINK to account on

their commitments to ensure the public continues to have adequate access to cash, following the cut

to ATM interchange fees that convenience store rely on.

“We welcome the Government’s focus on cash as a means of payment, especially for more

vulnerable consumers. 75% of transactions in convenience stores are being made with cash, so

ensuring that customers have access to cash is extremely important. This consultation is especially

timely given LINK’s recent announcement to cut the interchange fee paid to ATM operators,

threatening the ATM network and inevitably reducing the availability of cash to consumers.”

EEF’s CEO Stephen Phipson said: “Commitments to the industrial strategy pillars of people and

infrastructure demonstrates progress in key areas of skills development and digital infrastructure

but this will throw down the gauntlet to other Government departments to step up to the plate and

deliver.”

British Retail Consortium’s CEO Helen Dickinson OBE said, “The Government needs to look

more widely than simply focussing on digital tax, instead looking across all elements of business

taxation. Given the fundamental questions we now face in a digitally connected and globalised

world where tax systems have evolved on a national basis, the Government needs to go further than

the current business tax road map, published in March 2016. Specifically, there is a need to re-

balance away from input taxes (on things like people and property) and towards output taxes (on

profits) as well address other underlying problems with the way that different taxes work. This

would attract investment which would lead to greater productivity and improved living

standards.”

Tej Parikh, Senior Economist at the Institute of Directors said: “The IoD agrees with the

Government’s view that the taxation of certain global business models may well require action

under the auspices of the OECD. We would be concerned if measures were introduced just in the

UK, or in a limited number of countries, as this would risk driving these businesses (and the high-

value jobs they provide) to countries which don’t take the same action. This would be a bad

outcome for the UK.”

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Summary

Opposition response

Stakeholder reaction

T- Levels

• Chancellor Hammond affirmed the Government’s commitment to ensuring people had the

skills they needed to meet the challenges ahead.

• He emphasised the £500m announced in the Budget for T- levels before announcing that

from next month, £50m would be available to help employers prepare for the rollout of T-

level work placements.

Apprenticeships

• The Chancellor announced that next month the £29m construction skills fund would open

for bids to fund up to 20 construction skills villages around the country.

• He reiterated that the Government were committed to delivering 3 million apprenticeship

starts by 2020, with the support of business, through the apprenticeship levy.

• The Chancellor recognised the challenges this presented to some small business before

announcing that the Education Secretary would release up to £80m of funding to support

small businesses in engaging an apprentice.

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• A consultation on “Taxation of self-funded work-related training” was launched by the

Chancellor, Chapter 2 of which relates to adult education and training.

Labour Party’s Response Shadow Chancellor John McDonnell published his response to the Spring Statement, asking:

“Hasn’t [the Chancellor] listened to the doctors and nurses, the teachers, the police officers, the

carers and even his own councillors?”

Liberal Democrats Response Leader of the Liberal Democrats, Vince Cable said: “The Spring Statement was a non-event… It is

time the government was honest with the public: there will need to be tax increases to pay for the

NHS and social care, police and schools.”

T – Levels

Anthony Walker, Deputy CEO techUK said: “TechUK supports the decision to provide £50 million

to help employers roll out T-levels. T-Levels can have a positive impact on improving digital skills.

However, they won’t be successful unless businesses of all sizes have the capacity to engage

effectively in their delivery. The announcement of support for SMEs struggling to deliver

the Apprenticeship Levy is also welcome news. Small tech businesses with higher than average

salaries are more likely to be caught in the Levy and need real support to deliver

effective apprenticeship programmes. However, there remains an urgent need for significant reform

of the Levy to provide the flexibility necessary to close the digital skills gap.”

Geoff Barton, General Secretary of the Association of School and College Leaders, said: “We’re

pleased to hear the Chancellor’s assurance that there is light at the end of the tunnel for the UK

economy. This must now translate into a better deal for schools and colleges. Given the positive

nature of today’s statement, we can see no reason why the Chancellor would not now set out plans

in his autumn Budget to address the funding crisis in education, and we call upon him to do so.

Schools and colleges have already weathered years of austerity. They have done a superb job under

very difficult circumstances. But this cannot go on. They are at breaking point and the young people

of this country deserve better.”

Brian Berry Chief Executive of the Federation of Master Builders said: “The announcement of a

doubling of funding to the Lloyd’s Housing Growth Partnership and an additional £80 million

funding to support SME firms looking to engage an apprentice is welcome news. With Brexit

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looming large on the horizon and the construction industry facing a chronic skills crisis, it’s of the

utmost importance that more skilled workers begin to join the sector. An additional £50 million to

support T level training will further aid this aim.”

Apprenticeships

Stephen Evans, Chief Executive of the Learning and Work Institute: “The Chancellor’s Statement

is a case of short-term gain, long-term pain... The extra £80 million to support SMEs to take on

apprentices is welcome, but more fundamental changes are needed too. Alongside increased

investment, we need new ways to engage adults in learning, a drive to improve literacy and

numeracy among the nine million adults that lack these skills, and a bigger ambition to help more

people with health problems and disabilities back to work.”

Professor Simon Denny, Executive Dean of Research, Impact & Enterprise, University of

Northampton: “With the Apprenticeship Levy steering many providers towards large

organisations, this announcement starts to redress the balance and allow smaller businesses to get

real support to effectively engage with apprenticeships. Increasing the numbers of apprentices in

the country should be a priority as apprenticeships provide people of any background and age with

new opportunities whilst giving the businesses they work for a real long term edge over their

competition.”

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Summary

Opposition response

Stakeholder reaction

Call for Evidence on single use plastics

• The Chancellor has published a call for evidence to tackle single use plastic. Mr Hammond

insisted that any measures will seek to change behaviour, rather than raise revenue. The

review will "look at the whole supply chain", the Chancellor notes.

• Furthermore, the Government is committing £20 million now to "help universities and

businesses deliver solutions" on tackling plastic waste.

BEIS and DEFRA receive Brexit funding boost

• The Government has also allocated £185 million in funding for BEIS in 2018-2019 to

“prioritise the essential programmes to realise the opportunities from EU exit.”

• DEFRA meanwhile will receive £310 million in funding for DEFRA in 2018-2019 to help the

Department prepare for the impacts of Brexit.

• This is part of a £3 billion pot of funding for Brexit that was announced back in the Autumn

Budget last year. As a whole, Whitehall will receive £1.5 billion in funding for 2018-19, and

another £1.5 billion in 2020-22.

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OBR Economic Forecast shows environmental levy costs are down

• Alongside the Spring Statement, the Office for Budget Responsibility have published their

latest Economic and Fiscal Outlook. The outlook forecasts environmental levies (which

includes energy subsidies such as Contract for Difference (CfD) “in 2021-22 and 2022-23 is

around £½ billion a year lower, largely due to the capacity markets scheme.”

• This is of note, because the Autumn Budget noted that there will be no new low carbon

electricity levies until the “burdens” of such costs “fall in real terms over a sustained

period”, which will be around 2025.

• This is due to the historically low clearing prices for the recent capacity market auctions. On

this, the OBR also note that: “The lower clearing price in the most recent auction suggests a

downside risk, but future auctions could depend more on supply from ‘new build’ which is

likely to be an upside risk. Since these risks apply equally to receipts and spending, they do

not pose a risk to our forecast for net borrowing.”

• Furthermore, receipts from environmental levies have rose from £8.6 billion in 2017-18 to

£12.8 billion in 2022-23. This is largely due to the CfD auction.

OBR to assess economic impact of the Energy Price Cap

• Under the ‘policy risks’ section of the outlook, the OBR list the energy price cap, and note

that “we will include the effects of this policy once the level of the cap is established and we

have been able to scrutinise an associated five-year policy costing.”

Government mulls tax changes to encourage cleaner vans and machinery

• Finally, in the coming months, the Government will also publish a consultation on reducing

Vehicle Excise Duty rates for the cleanest vans in order to “help the Great British White Van

driver go green.”

• The Chancellor will also publish a call for evidence into whether the use of red diesel tax

relief discourages the purchase of cleaner engines, with the focus being on improving air

quality. Red diesel for agricultural use will be outside the scope of the call for evidence, as is

home heating use.

In his response to the Spring Statement, Shadow Chancellor John McDonnell warned: “This is a

government that single-handedly destroyed our solar industry: 12,000 jobs were lost as a result of

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subsidy cuts.” He went on to note that the Government has cut R&D funding by £1 billion in real

terms.

James Court, Head of Policy and External Affairs at the Renewable Energy Association said: “We

welcome commitments by the chancellor to use the tax system to spur green innovation in the field

of recycling, and call on him to go further and kick start the renewables economy by introducing

enhanced capital allowances for technologies of the future such as solar and energy storage.”

“Delivering new homes is a political priority shared by all, but we need to ensure these new homes

are good quality and fit for the future. We call on the Chancellor to ensure that the homes being

supported by the Housing Infrastructure Fund have high efficiency ratings, are using renewable

energy to power and heat their homes, and have sufficient electrical supplies to support the coming

mass roll-out of electric vehicles.”

Dr Jenifer Baxter, Head of Engineering at the Institution of Mechanical Engineers, said: “We

welcome the announcement that new homes will be built across the UK. These new homes must be

resilient, as our future climate is changing and our energy and transport systems are evolving.”

“New homes must enable residents to take the opportunities that these new systems could offer,

from smart distributed energy, presuming (householders that produce and consume energy),

electric vehicle charging, natural/hydrogen gas appliances and in-house systems that support the

elderly are all possibilities. If homes are not built with our future in mind, then new householders

will have to pay to retrofit their own houses."

The Environmental Services Association (ESA) Executive Director Jacob Hayler said: “The

Chancellor today has rightly recognised the scourge of single-use plastics which not only blights

our natural environment through littering, but in many cases presents challenges for recycling. ESA

has long called for the Government to strengthen producer responsibility to ensure that those who

place products and packaging on the market also take greater responsibility for recapturing those

materials at the end of their use. Higher taxes or charges for virgin plastics could be part of an

overall system which drives the right behaviours across the supply chain by boosting demand for

recycled alternatives.

“The call for evidence launched today by the Chancellor in the Spring Statement is therefore highly

welcome. It is a strong first step and shows that the Government is taking this issue seriously. We

look forward to making our recommendations to the Treasury.”

Greenpeace UK senior political adviser Rebecca Newsom said: "The success of the plastic bag

charge shows that a smart tax on plastic can work, so it's good to see the Chancellor reconfirm his

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commitment to look into this. The main problem with single-use plastic is that we produce far too

much of it in the first place. That's why, as well as charges, the government should introduce

measures to fundamentally reduce the amount of plastic waste being produced and sold.”

“There should be more pressure on supermarkets and food giants to cut down the amount of

throwaway plastic they put in circulation, and it should go hand in hand with a UK-wide deposit-

return scheme for all drinks containers that can boost collection rates. The plastic problem is huge,

but so is public support for action. This gives Theresa May's government a unique opportunity to

do what it takes to protect our oceans from the threat of plastic waste and set an example for other

countries to follow."

Friends of the Earth campaigner Julian Kirby said: “Taxes and charges have an important role to

play in tackling the scourge of plastic waste, but this must be part of a wider government plan to

phase-out all but the safest and most essential plastics. “

“Single-use plastics like coffee-cup lids and drinks bottles should be amongst the easiest to deal

with, so it makes sense to target these first. We can’t afford to dither. We are in the midst of an

environmental crisis, with a huge range of products including clothes, suncream, paints and tyres

contributing to millions of tonnes of plastic that pollutes our oceans every year.”

“Ministers must get tough on plastic pollution - and the companies who are responsible for creating

this mess should be playing a much greater part in undoing the damage they’ve already caused.”

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Summary

Opposition response

Stakeholder reaction

Economic Outlook

• The Chancellor made several announcements relating to the UK's outlook during the Spring

Statement.

• The Office for Budget Responsibility (OBR) estimate that inflation will fall back to the 2%

target in the next 12 months.

• The OBR also gave a slightly more positive outlook for GDP growth in 2018, increasing its

forecast from 1.4% in November, to 1.5%.

• However, growth forecasts for 2019 and 2020 remain unchanged, whilst growth in 2021 has

been estimated at 1.4% (down from 1.5% forecasted in November) and 1.5% in 2022 (down

from 1.6%).

• The OBR predicted that government borrowing would fall to 2.2% in 2017-18. Borrowing is

also forecast to fall over the next 5 years, falling to just 0.9% in the year 2022-23.

• Government debt predictions have also been revised down, with debt in 2017-18 at 85.6%,

down 0.9% from the originally predicted 86.5%. This falling trend will continue, with debt

predicted to be at 77.9% in 2022-23 (down from the original forecast of 79.1%)

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Tax and the digital economy The government has launched the following consultations:

• Corporate tax and the digital economy – this policy paper sets out the government’s view to

develop:

▪ a more detailed explanation of how user participation is considered to create value

for certain digital businesses;

▪ a possible approach for incorporating user-created value into the international tax

rules

▪ It also asks for feedback on the detailed design of a revenue-based interim measure.

• Cash and digital payments in the new economy – this policy paper that looks at how the

government can support digital payment, cash availability and address those using cash to

evade tax and money launder. The paper sets out the Government’s plans to assess:

▪ the costs and disincentives that still exist in making digital payments

▪ whether there is sufficient provision of ATM’s

▪ what more could be done to crack down on the use of cash for money laundering

and tax evasion

• Online platforms’ role in ensuring tax compliance by their users – a consultation exploring

what more online platforms can do to help their users pay the right amount of tax.

Growth & productivity The government has launched the following consultation:

• Financing growth in innovative firms – The Government has launches a consultation on

creating a fund structure within the Enterprise Investment Scheme for investment in

innovative knowledge-intensive companies.

Tax avoidance, evasion & non-compliance The government has launched the following consultation:

• Extension of security deposit legislation – a consultation on how to extend existing security

deposit policy to include corporation tax and Construction Industry Scheme deductions for

taxpayers deemed at high risk of not paying and with a history of non-compliance.

Taxation System The government are to publish the following consultations:

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• Taxation of trusts – a consultation on how to make the taxation of trusts simpler, fairer and

more transparent.

• Capital Gains Tax payment window – a technical consultation on the design of the system

requiring capital gains tax due on a disposal of residential property to be paid within 30

days of completion.

Shadow Chancellor John McDonnell said that “the Chancellor has proclaimed that there is light at

the end of the tunnel. But this shows just how cut off from the real world he is.”

Leader of the Liberal Democrats Sir Vince Cable said “The OBR’s fresh forecasts are still a long

way behind the figures estimated in March 2016 before the EU referendum.”

Nigel Green, Founder and chief executive of deVere Group, commented “Mr Hammond’s Spring

Statement had a decidedly pro-technology tone and this is, I believe, enormously encouraging for

the financial sector.”

Torsten Bell, Director of the Resolution Foundation, said “This is a sugar rush Spring Statement,

with short-term good news on borrowing and growth fading fast. The £4.7bn improvement in

Britain’s public finances this year is welcome, but smaller than expected, and the Chancellor’s £15bn

of headroom against his main fiscal rule remains largely unchanged.”

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Summary

Opposition response

Stakeholder reaction

Tobacco

• The Government published its response to the consultation on the tax treatment of heated

tobacco products. The Government has said it will create a new category for heated tobacco

products for duty purposes, and set out some exceptions.

NHS Staff Pay

• The Chancellor said that there could be more pay for NHS staff if management and workers

reached a deal.

Soft drinks levy

• The OBR further downgraded the forecast for how much the levy would raise. It was now at

£240m a year which is half the original forecast in 2016. The OBR attribute this further

downgrade to new information suggesting the extent of reformulation was greater than

initially thought.

John McDonnell

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The Shadow Chancellor said that asking NHS workers to give up a day’s holiday for a pay increase

was “mean-spirited”.

He regularly referred to the lack of investment in public services, accusing the Chancellor of not

listening to the doctors, nurses, families and his own councillors.

Caroline Abrahams, Co-Chair of the Care Support Alliance and Charity Director, Age UK said it

was very disappointing that there was nothing in the Statement on social care. She added that “the

promise of jam tomorrow won’t stop care services going bust and front line staff walking away in

favour of better paid, less demanding jobs today. So the Spring Statement was a big missed

opportunity so far as social care is concerned.”

Jonathan Carr-West, Chief Executive, LGiU said that for councils “facing an immediate and

deepening financial crisis” it would be a long wait for extra funding until the Autumn Budget.

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Summary

Opposition response

Stakeholder reaction

Transforming Cities Fund

• In the Autumn Budget 2017, the Chancellor announced the £1.7bn Transforming Cites Fund

to improve transport in English cites. Half of this funding was allocated to Combined

Authorities with mayors.

• The Government is now inviting bids from cities across England for the remaining £840m

which will be available over the four year period to 2021- 22. The funding will be entirely

capital.

• Proposals will be accepted from English local transport authorities outside London. The six

Mayoral Combined Authorities that have already received allocations will be ineligible to

bid for additional funding.

• The application process will favour city regions with workday populations above 200,000

people. The Government will then select up to ten city regions with whom they will co-

develop packages of schemes. These will then be competitively assessed against each other

with funding awarded to the proposals which demonstrate the greatest improvements to

productivity and offer the best value for money.

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Air Pollution

• In the coming months, the Government will publish a call for evidence on reforming VED

rates for the cleanest vans through creating a graduated first year rate, as is already in place

for cars, to encourage cleaner choices and improve environmental outcomes.

• In the coming months, the Government will publish a call for evidence into whether the use

of red diesel tax relief discourages the purchase of cleaner engines. The primary focus of this

call for evidence will be on improving air quality outcomes, particularly in urban areas. The

call for evidence will not cover red diesel for agricultural use or home heating.

Transport Projects

• While the Chancellor did not make any announcements on large transport projects, he did

reaffirm the Government’s commitment to their plans to deliver the Cambridge-Milton

Keynes-Oxford Corridor.

Rail franchising premia

• In their economic and fiscal outlook, the Office for Budget Responsibility (OBR) revised

down the rail franchise premia receipts by £0.5bn in 2018-19 and by £0.6bn in 2019-20. The

OBR said the weaker forecasts reflected a number of factors including growth in passenger

numbers, which has been weaker than the Government assumed.

Air Passenger Duty

• The Government have launched a call for evidence that will look at the impact of VAT and

Air Passenger Duty on tourism in Northern Ireland. The call for evidence closes on 5 June

2018.

Housing Infrastructure Fund

• The Chancellor said the Government was working with 44 local authorities who have bid

into the £4.1bn Housing Infrastructure Fund, to unlock homes in areas of high demand.

Brexit

• The Government announced that over £1.5bn will be allocated to departments and devolved

administrations to prepare for Brexit in 2018-19. The Department for Transport has been

allocated £75.8m in 2018-19.

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In his response to the Spring Statement, Shadow Chancellor John McDonnell criticised transport

spending in London compared to the rest of the country: “And despite all the promises the

Government continues to fail to address regional imbalances in investment: London will receive

almost five times more transport investment than Yorkshire & Humber”.

Labour Mayor of London Sadiq Khan criticised the proposals to tackle air pollution: “There was

also no further commitment from Government to clean up our toxic air – and Londoners will be

staggered that we are not able to access Government funding to tackle and mitigate air pollution –

when the capital is so badly affected”.

IPPR North Director Ed Cox said “We didn’t expect any big transport announcements but the

woeful disparities in transport investment between London and the North remain. As Transport for

the North bring forward their key priorities later in the year this government will be in the last

chance saloon if it doesn’t put its money where its mouth is on the Northern Powerhouse.”

Campaign for Better Transport’s Andrew Allen said: “We welcome the Chancellor’s confirmation

that new transport funding will be available to all English cities, not just those with mayors. This

funding is essential in cleaning up toxic air, rebalancing the economy and tackling social exclusion.

Cities need to take advantage of this opportunity and invest in viable bus services, improve cycling

and walking infrastructure and help deliver the Government's commitment to expanding the rail

network.

“We also welcome the consultation on reducing tax for low emission vans. Vans are one of the

largest growing transport modes, so encouraging firms to switch to low emission vehicles is

imperative if we are to address our woeful air quality”.

RAC head of roads policy Nicholas Lyes said: “The announcement that the Chancellor will look at

the possibility of reducing VED for businesses that buy cleaner vans is very welcome and we look

forward to seeing more detail on this.” “But motorists will be very disappointed that the Chancellor

hasn’t addressed the issue of the condition of local roads in his Spring Statement”.

Rail Delivery Group Chief Executive Paul Plummer said: “The re-affirmed backing of the

Cambridge, Milton Keynes and Oxford corridor is good news, as is government funding for local

transport schemes. The railway is a unique asset for generating prosperity across Britain and

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investment will deliver new growth and productivity across the country. Working in partnership,

we stand ready to play our part”.

TSSA leader Manuel Cortes said: “The Chancellor has done nothing again to alleviate increasing

transport poverty both in terms of services available and the increasing cost of fares for passengers”.

Mr Cortes sad the Chancellor “should fully fund a fare freeze so that investment continues to flow

into our railways whilst starting to address the highest fares in Europe”.

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Summary

Opposition response

Stakeholder reaction

Housing Investment

• The Spring Statement confirmed the Government’s investment programme of £44bn over

the next five years to raise the supply of homes to 300,000 a year by the mid-2020s.

• The Chancellor also confirmed that the Government was currently working with 44

authorities on their bids to the £4.1 billion Housing Infrastructure Fund.

• The Government announced that it had reached a deal with the West Midlands to build

215,000 new homes by 2030-31, with the help of a £100m grant from the Land Remediation

Fund.

• London will receive £1.67bn to start building a further 26,000 affordable homes, including

new housing for social rent, by the end of 2021-22.

• An extra £60m has been allocated to the Housing Growth Partnership fund that supports

small and medium sized housebuilders. Lloyds Banking Group have match-funded to bring

the total additional investment to £120m. The Partnership, launched in 2015, now stands to

be worth £220m.

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Independent review of build-out rates

• The Chancellor confirmed the publication of Sir Oliver Letwin’s preliminary update on his

review into build-out rates.

• Sir Oliver has argued that the fundamental driver of build-out rates is the ‘absorption rate’,

the rate which newly constructed homes can be sold into the local market without materially

disturbing the market price.

• The Draft Analysis will be published by Sir Oliver in June, with the final report making

recommendations on practical steps to increase the speed of build-out expected at the

Autumn Budget this year.

Construction

• The Government announced that its £29m construction skills fund gap will open for bids to

fund up to 20 construction skills villages around the country.

• The Chancellor also announced the release of £80m of funding to support small businesses

in engaging an apprentice.

• The Chancellor said the Government will launch a call for evidence on “how we can

eliminate the continuing scourge of late payments – a key ask from small business.”

• The Government have launched a consultation on how to extend existing security deposit

policy to include corporation tax and Construction Industry Scheme deductions for

taxpayers deemed at high risk of not paying and with a history of non-compliance.

• In the coming months, the Government will launch a consultation on tackling construction

sector supply chain fraud. This will be a technical consultation on draft legislation for a VAT

reverse charge which will help to eliminate the threat of ‘missing trader’ fraud in

construction industry supply chains. The reverse charge will achieve this by shifting

responsibility to the customer for paying VAT to HMRC where the customer is a VAT-

registered construction business.

Support for Mortgage Interest

• In the Summer Budget 2015, the Government announced that, from April 2018, support for

mortgage interest (SMI) will switch from being a non-repayable benefit payment to an

interest-bearing loan.

• In their economic and fiscal outlook, the Office for Budget Responsibility (OBR) said that

only around 10,000 claimants have so far agreed to take up the loans from April, 90 per cent

short of the 100,000 expected by the end of 2018-19.

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Right to Buy

• In their economic and fiscal outlook, the Office for Budget Responsibility (OBR) said the

Treasury had informed them that legislation setting out in detail how right to buy for

housing association tenants work remained ongoing.

Help to Buy

• In December, the Government announced that it had “written to all developers to ask them

to stop using Help to Buy equity loans for the purchase of leasehold houses”. The

Government have told the Office for Budget Responsibility (OBR) that it will be considering

legislative options for delivering this in the months ahead.

• The Help to Buy ISA was announced by the Government in the 2015 Budget and it was

estimated that cumulative Government expenditure would reach nearly £700m by the end of

2017-18. In their economic and fiscal outlook, the Office for Budget Responsibility (OBR)

said that take-up so far of the Help to Buy ISA has been well below expectations and the

total value of payments in the first 22 months of the scheme was just £104m.

Ban on letting fees

• In the Autumn Statement 2016, the Government announced its intention to ban additional

fees charged by private letting agents.

• In their economic and fiscal outlook, the Office for Budget Responsibility (OBR) said it was

possible that a ban on additional fees charged by private letting agents could lead to higher

private rents. If this was the case, the OBR said it could affect their housing benefit spending

forecast.

Stamp Duty

• During the Autumn Budget 2017, the Government announced that it would allow first-time

buyers purchasing houses under £500,000 to claim a relief on their stamp duty land tax

(SDLT).

• The Office for Budget Responsibility (OBR) has said that the early evidence suggests the

number of sales benefitting from this policy has been broadly as expected, but their average

price has been slightly higher than assumed.

• While cautioning that this is early evidence, the OBR said this suggested the annual cost of

the relief could be around 15 to 20 per cent higher than expected.

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During his response speech, Shadow Chancellor John McDonnell spoke about homelessness:

“There are nearly 5,000 of our fellow citizens sleeping rough on our streets – more than double the

number in 2010. Tragically, one of our homeless died – only feet away from the entrance to

Parliament”.

Labour Mayor of London Sadiq Khan issued a press release in which he “cautiously welcomed”

the extra £1.67bn of affordable housing investment for London, however he criticised the “18 month

delay in agreeing London’s share since some of the funding was first announced by the

Government”.

He added: “The housing crisis is the capital’s biggest challenge and we are still not seeing the level

of investment that we need if we want to tackle it head on. We still need more devolved investment,

we need an overhaul of powers to assemble unused land for forms and we need councils and City

Hall to be freed to build many more affordable homes.”

Shadow Housing Minister John Healey MP called for attention to be given to OBR analysis on

changes to support for mortgage interest tweeting that “help for low-income home-owners will be

cut in less than three weeks, but only one in ten have been set up with a loan to cover the shortfall.

How many people will now lose their homes?”

Mayor of the West Midlands Andy Street said: “As the centre of the UK’s economic growth, housing

has been one of the key priorities for the West Midlands. Therefore the Housing Deal, announced

today by Government, is a huge milestone for the West Midlands” adding that “This funding will see

tens of millions of pounds invested to remediate brownfield sites, of which our region has many, to

build homes and install the infrastructure required to accommodate growth, helping to relieve

pressure on our Green Belt”.

FMB Chief Executive Brian Berry said: “The Chancellor’s announcement of a consultation to tackle

the scourge of late payment today should mark a turning point on this issue. We should use this

opportunity to bring about a spring clean of payment practices which negatively impact on small

business. Construction giant Carillion’s collapse at the start of the year brought to light once again

the need to eliminate poor payment practises that plague the construction sector particularly”.

Chartered Institute of Housing’s Head of Policy Melanie Rees said: “This is another missed

opportunity to get us closer to building the homes that we need.” “"In his statement the chancellor

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said that the government’s focus on reducing the national debt is to give the next generation a

chance, but unless we quickly start to build more of the right homes in the right places then the next

generation will have absolutely no chance of getting access to a home that they can afford”.

Federation of Small Businesses (FSB) National Chair Mike Cherry said: “The Chancellor has sent

a clear message to UK boardrooms today by committing to ending the late payment crisis that

destroys 50,000 businesses a year. We look forward to working with the Chancellor and his team to

eliminate the scourge of late payments. Ending the late payment crisis could add £2.5 billion to our

economy annually and help close the productivity gap.

“Eight in ten small firms suffer from late payments. The collapse of Carillion highlighted the

dangers of the UK’s pernicious poor payment culture. We need to create an environment where

another Carillion can’t happen”.

LGiU Chief Exectuive Jonathan Carr-West commented: “We still don’t really know how local

government finance is going to work after 2020. So councils are left struggling to balance the books

on a day to day basis all while having no idea how many homes they will be able to build and

services they will be able to provide beyond 2020”.

KPMG Midlands Regional Chair Karl Edge said: “A real boon for the West Midlands is the

announcement of a £350m investment for a major housebuilding programme in the region. It’s no

secret that the housing shortage is a major issue in our local community, and in our recent

productivity report, it was one of the top four priorities in need of addressing to help boost

productivity. However, housing is just the start, and some questions remain. For example, how many

of the 215,000 homes will support inclusive growth through initiatives like social housing?”

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Key Publications

• Office for Budget Responsibility - Economic and fiscal outlook

• Treasury - Corporate tax and the digital economy: position paper update

• Oliver Letwin review into planning and housing – preliminary findings.

• Written Ministerial Statement – Chief Secretary Elizabeth Truss - Spring Statement – EU exit

funding allocations to departments 2018/19

• Written Ministerial Statement – Chancellor Philip Hammond - Spring Statement

Consultations

Consultations - HMRC

• Extension of security deposit legislation - Closing: 08/06/2018

• Online platforms’ role in ensuring tax compliance by their users - Closing: 08/06/2018

• Alternative method of VAT collection – split payment - Closing: 29/06/2018

Consultations - Housing, Communities & Local Government

Responses

• Business rates: delivering more frequent revaluations

Consultations - Treasury

• Financing growth in innovative firms: Enterprise Investment Scheme knowledge-intensive

fund consultation - Closing: 11/05/2018

• Allowing Entrepreneurs’ Relief on gains made before dilution - Closing: 15/05/2018

• Tackling the plastic problem - Closing: 18/05/2018

• Cash and digital payments in the new economy - Closing: 05/06/2018

DeHavilland Information Services Ltd 2018 | www.dehavilland.co.uk 40

• VAT, Air Passenger Duty and Tourism in Northern Ireland - Closing: 05/06/2018

• VAT registration threshold: call for evidence - Closing: 05/06/2018

• Taxation of self-funded work-related training - Closing: 08/06/2018

Responses

• Tax treatment of heated tobacco products

DeHavilland Information Services Ltd 2018 | www.dehavilland.co.uk 41

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