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Another week: another fiscal event. I’ve shared my thoughts on the content of Jeremy Hunt’s statement on page 8. Here I want to reflect on what might be called the choreography of the event.
As has become the practice, the days before the speech were filled with speculation about what the chancellor might say. Some of this was clearly officially sanctioned rather than leaks. It is safe to say there is a fair amount of kite flying going on – with stories of possible changes being released in order to test public reaction. The potential cut in inheritance tax played out badly, with it being seen as favouring the rich rather than, as perhaps was hoped, supporting those who aspire to build up wealth to pass to their children. So we heard nothing of it in the speech, though it may of course return in the spring, when government minds will surely be turning to the next election.
All of this is a far cry from the old days of total ‘purdah’ before a Budget. If you don’t know the story of Hugh Dalton and the 1947 Budget, have a read about what happened: he lost his job after leaking information only a few minutes before his speech (see tinyurl.com/yc373zfw). Things were very different then.
In the end there were no real surprises on tax in the speech – the National Insurance cut had been clearly signalled a couple of days in advance. Rabbits remained firmly in the chancellor’s hat. Perhaps he is waiting to the spring to let them all out at once.
If you do one thing…
Note that the government is going ahead with its plan to introduce a new criminal offence to apply to promoters of tax avoidance who fail to comply with a stop notice under the promoters of tax avoidance schemes regime issued in respect of tax avoidance arrangements. More details are on HMRC’s website: tinyurl.com/hmrcpppromoters.
