Introduction
The 2022 Spring Statement is due to be held on Wednesday 23 March 2022. The Chancellor of the Exchequer has commissioned the Office for Budget Responsibility (OBR) to produce an economic and fiscal forecast for that day.
Whenever the Chancellor of the Exchequer delivers a Budget or gives a financial statement, there are interested parties watching keenly hoping to hear favourable changes to tax and spending. This year's Spring Statement will be no exception.
The Confederation of British Industry (CBI) has already warned the Chancellor that he must act at the Spring Statement.
The CBI says that if he doesn't he will risk the UK economy drifting backwards to low growth. To prevent this from happening the CBI has set out a range of policies it says are aimed at sparking growth via business investment.
These include a permanent investment incentive to replace the super-deduction. The business group says this will boost business investment by £40 billion a year by 2026.
The CBI also wants to see the Apprenticeship Levy turned into a Skills Challenge Fund. In addition, the government should tackle high energy prices by improving home energy efficiency through new grants for decarbonised heating systems.
The CBI has been joined in its call to make the super deduction by manufacturers' organisation Make UK.
Make UK is also calling for Chancellor Sunak to delay the planned 1.25% rise in national insurance contributions (NICs). It says the increase planned for April should be pushed back until the UK economy is in a stronger position.
We will find out whether any of these proposals have found favour with Chancellor Sunak on 23 March. You will be able to find full coverage of the Spring Statement here.