The Chancellor delivered his Spring Statement this afternoon, the first in the government’s new budgetary cycle which will see just one major fiscal a year take place in the autumn. The Chancellor responded to forecasts from the Office for Budget Responsibility (OBR) and announced more than ten consultations on issues ranging from VAT to plastics to tobacco.
One issue that didn’t feature however was IR35. At the Autumn Budget, the Chancellor said that he planned to consult on non-compliance with IR35 in the private sector. Many had expected the Chancellor would choose today to launch his consultation with a view to introducing changes in 2019. It is encouraging that there has been no announcement as of yet. We hope that the government is instead focussing on developing a more holistic approach to employment status in line with Matthew Taylor’s recommendations.
Ahead of the Spring Statement, in our representations to the Treasury, we stressed that introducing changes to IR35 in the private sector would be premature, as the impact of the public sector changes is not yet fully known and there are still issues with implementation that need to be rectified. You can read our full response here.
While there were no major tax or spend announcements, there were some updates on the allocation of education and skills funding. These include:
There were also consultations announced on:
We’ll be continuing to monitor developments with IR35 and we will push the government to make improvements to the system in the public sector. We’ll also be focusing on responding to the series of consultations published by the government last month in response to the Matthew Taylor review. We’ll be gathering your views through webinars and member meetings over the coming weeks.
In the meantime, if you have any questions, please email firstname.lastname@example.org.