UK Spring Budget 2022

Eversheds Sutherland comments on the Chancellor's Budget and what it will mean in practice

The UK Chancellor of the Exchequer, Rishi Sunak, will present his 2022 Spring Budget to Parliament on Wednesday 23rd March 2022. Since setting out his road to recovery plans in the Autumn Budget of 2021, the Chancellor now has the added challenges of dealing with the Ukraine crisis and of domestic cost of living rises.

Rising fuel costs and ongoing supply problems continue to pressurize businesses and manufacturers, so a halt on the current fuel duty freeze is being demanded. Likewise energy costs for key manufacturing industries are at tipping point and both businesses and trade unions are demanding urgent action.

One concern for the Hospitality sector is the planned rise of VAT from 12.5% to 20% from April, given the lack of extra cash in customers pockets. This coupled with the potential increase of the Business rates again in April may see many in this sector get into further difficulties if either of these rates are not paused.

Potential solutions to some of these difficulties may be an overhaul of Britain's corporate tax system to encourage capital investment from businesses. Whilst the recent political focus in Ukraine, may put pressure on the Government to spend more on the defense sector in the coming months.

Check back to view further commentary on the Spring Budget 2022 as the details unfold.