The Chancellor Philip Hammond presented the Spring Statement 2018 on Tuesday 13 March.

In his speech he provided an update on the economy. He also responded to the Office for Budget Responsibility forecasts. In addition he launched consultations on various aspects of the tax system.

Changes to the Timing of Tax Legislation

Chancellor Philip Hammond has implemented some fundamental changes to the UK fiscal timetable.

In the 2016 Autumn Statement, the Chancellor announced that he would be introducing a new Budget timetable. This would see the main annual Budget moving from its traditional spring setting to the autumn. It would also see the Autumn Statement being replaced by a Spring Statement. The first Autumn Budget was presented in November 2017.

The New Process

The general process of developing tax policy will remain the same. However the timescales for policy making and consultation have changed significantly. The government hopes that the new system will allow more time to scrutinise and consult on draft tax legislation before it is introduced.

The new timing of the Autumn Budget will allow the announcement of most new measures well in advance of the tax year in which they are due to take effect. As has happened in the sprint budget 2018, the Spring Statement in the future will also offers the opportunity for the government to consult during the early stages of policy making, and publish calls for evidence on long-term tax policy issues.

Under the new system, measures announced in the Autumn Budget will generally be consulted on during the winter and spring, with draft legislation being published in the summer, ahead of the introduction of the Finance Bill in the winter. This will then receive Royal Assent the following spring.

Click here to read our summary of this years Spring Statement