[UK] UK Budget Cancelled [UK] UK Budget Cancelled

[UK] UK Budget Cancelled
31 Oct 2019

On the 14th of October 2019, Chancellor Sajid Javid said that he would be holding the UK budget on the 6th of November 2019, billing it as “the first Budget after leaving the EU”.  But the announcement did say that he “planned” to do this so nothing was ever set in stone.

Given the continuing Brexit delay in the House of Commons, speculation was that his 6th of November 2019 plan would be cancelled.  This was fuelled even further by Boris Johnson’s desire to hold an election on the 12th of December 2019 meaning that Parliament would be dissolved at midnight this date anyway.

In a letter to the new chair of the Treasury Select Committee Mel Stride on the 25th of October 2019, Sajid Javid confirmed: 

“I can therefore confirm that I have decided not to bring forward the Budget on the 6 November” 

Global Payroll Association Comment

On the 22nd of October 2019, Mr Javid was presented with public sector net borrowing figures by the Office for National Statistics (ONS) that indicated a rise in year on year government borrowing of £0.6 billion, the first borrowing increase for five years.  These indicate that the government is on target to miss its own borrowing targets and would appear to make it more difficult for the government to claim an end to austerity. 

Yet, the country as a whole needs certainty and this goes for payroll departments too.  The annual Budget goes some way to providing that as we can have expected a Finance Bill shortly afterwards.

With a postponed Budget, payroll and software developer professionals are left in a difficult position.  As far as we are aware, none of the changes for 2020/21 have been fully legislated for.  This includes things like changes to company car tax, Employment Allowance eligibility, off-payroll / IR35 working and Statutory Parental Bereavement Leave.  We can only assume that these things will take place as announced, though we cannot guarantee that they will happen.

On the 14th of October 2019, Chancellor Sajid Javid said that he would be holding the UK budget on the 6th of November 2019, billing it as “the first Budget after leaving the EU”.  But the announcement did say that he “planned” to do this so nothing was ever set in stone.

Given the continuing Brexit delay in the House of Commons, speculation was that his 6th of November 2019 plan would be cancelled.  This was fuelled even further by Boris Johnson’s desire to hold an election on the 12th of December 2019 meaning that Parliament would be dissolved at midnight this date anyway.

In a letter to the new chair of the Treasury Select Committee Mel Stride on the 25th of October 2019, Sajid Javid confirmed: 

“I can therefore confirm that I have decided not to bring forward the Budget on the 6 November” 

Global Payroll Association Comment

On the 22nd of October 2019, Mr Javid was presented with public sector net borrowing figures by the Office for National Statistics (ONS) that indicated a rise in year on year government borrowing of £0.6 billion, the first borrowing increase for five years.  These indicate that the government is on target to miss its own borrowing targets and would appear to make it more difficult for the government to claim an end to austerity. 

Yet, the country as a whole needs certainty and this goes for payroll departments too.  The annual Budget goes some way to providing that as we can have expected a Finance Bill shortly afterwards.

With a postponed Budget, payroll and software developer professionals are left in a difficult position.  As far as we are aware, none of the changes for 2020/21 have been fully legislated for.  This includes things like changes to company car tax, Employment Allowance eligibility, off-payroll / IR35 working and Statutory Parental Bereavement Leave.  We can only assume that these things will take place as announced, though we cannot guarantee that they will happen.

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