Martin’s Memo
Chancellor Philip Hammond described his first and last Spring Budget as one that “takes forward our plan to prepare Britain for a brighter future”.
Despite this early promise it wasn’t long before he was forced to back pedal on his plans for National Insurance Contribution increases in the face of political pressure exerted predominantly from his own backbenchers.
A link to Conçerva’s Spring Budget 2017 Summary Report can be found below:
In general, the Spring Budget was light on new measures with very few new announcements that will come into effect for the 2017/18 tax year.
Conçerva have also produced a tax card for the upcoming 2017/18 tax year. Again a link to our website can be found below:
Statistical Information
| Last Month | This Month | Change | |
|---|---|---|---|
| CPI | 1.8% | 2.3% | +0.5% |
| RPI | 2.6% | 3.2% | +0.6% |
The Office for National Statistics (ONS) recorded a significant rise in both the Retail Prices Index and the Consumer Prices Index from the last figures released. The general consensus from analysts that the days of low inflation are coming to a close appear to be correct, with CPI growing for a fourth consecutive month.
Rising energy and petrol prices, sectors which had previously served to lower inflation, are now having an upward effect on the figures. In addition the price of food increased for the first time following 31 consecutive months of reductions, pushing inflation up to the highest level since September 2013.
| February 2017 | March 2017 | Change | |
|---|---|---|---|
| Base Rate | 0.25% | 0.25% | 0.00% |
The Monetary Policy Committee (MPC) met on the 16th March and voted 8-1 to keep the Base Rate at 0.25%. This vote marked the first time Kristin Forbes elected to increase the Base Rate since she became a MPC member in July 2014.
The MPC is next due to meet on 11th May.