Chancellor, Jeremy Hunt, has recently delivered a statement regarding the autumn 2022 budget. With workers across the country including business owners, teachers and nurses feeling uncertain about the future as well as pensioners and families across the country, it’s clear that something needed to happen.
As we enter a cost of living crisis, it’s necessary now more than ever that the government take action and give the people of the UK some hope regarding how their financial affairs will plan out. Stating that his main priorities are stability, public services and growth, Jeremy Hunt has recently vowed to protect the most vulnerable throughout this period of time.
If you’re interested in finding out more information about the autumn budget that has been unveiled by Jeremy Hunt and what we think about it here at LJS Accounting Services, continue reading.
Autumn 2022 Budget
With the country being faced with an unpredictable future, Jeremy Hunt has recently announced an autumn 2022 budget in parliament. Jeremy Hunt is Chancellor of the Exchequer, making his statement in November of this year as residents of the UK express worry and concerns about the financial situation that the country is in.
The chancellor spoke clearly saying he’s had to make difficult decisions regarding his most recent statement, continuing to speak about the fair solutions he’s come up with prior to his announcement.
Hunt spoke about growth, borrowing, personal taxes, public spending and education to name a few, honing in on health and social care, particularly how it’s affected us after the Covid-19 pandemic.
The chancellor predicts that the Office for Budget Responsibility will increase by 4.2% this year alone, saying the country is already in a recession, with higher energy prices.
Many MPs were worried about the statement made by Hunt, going on to express the personal worries they’re having themselves. After looking at statistics, Hunt has made a prediction that one-third of the world economy will be in recession this year or next.
In cash terms, Hunt has said that the public sector net debt will peak during 2025 and 2026, falling gradually from around 97.6% GDP to 97.3% GPD by 2027. During the announcement of the autumn 2022 budget plan, Hunt set rules saying underlying debt must fall as a percentage within the next five years – this means that public sector borrowing must stay below 3% of GDP.
LJS Accounting Services: Our Take on Autumn 2022 Budget
The top rate of income tax is believed to drop from £150,000 to £125,000, whilst personal allowance is going to remain the same without going up. We believe that inflation running at 11.1% will have an impact – we can see why so many businesses and homeowners are anxious about the next couple of months.
Although businesses are worried, many workers will be delighted to know that the minimum wage is going to increase slightly from £9.50 to £10.42 – this equals around an extra pound on top of the hourly rate.
Personal Thoughts on the Autumn 2022 Budget
At LJS Accounting Services, our team deals with both personal and commercial finances daily. We believe that the recent budget plan set by Jeremy Hunt needed to happen for the economy.
The aim set by parliament is to rely more on the upper middle class to regain taxes, which has seemed to be the only way forward amid this whole financial crisis.
Looking closely at the budget plan, we fail to believe that this will actually affect businesses as much as the public think. Although the budget plan may not affect businesses too much, it will have an impact on shareholders and directors.
How LJS Accounting Services can Help
The expert team at LJS Accounting Services are here to give out professional advice to those who might need it during the financial crisis that we’re living through. It’s hard enough as it is having to stay on top of financial affairs regarding your business or personal life, even more so when you feel that you need some guidance.
We offer an array of services at LJS Accounting Services including Personal Tax, CIS Tax Disputes and more.If you or your business requires some help and guidance from our team of experts, be sure to contact a member of our team today.
Keli Evans, Director at LJS Accounting Services, excels in taxation and statutory accounts. With a focus on strong client relationships, she leads a diverse portfolio, overseeing vital financial aspects like VAT, payroll, pensions, and taxation with a holistic and committed approach.
