2017 is the year of two Budgets. This is Philip Hammond’s first budget statement since the general election in June, and the third since he became Chancellor last year. The UK has been the only major advanced economy in the world to make two major changes a year to its tax system, with Hammond today delivering the first UK Budget released in the Autumn for twenty years. A series of remarkable shifts have carved a permanent space for 2017 in both political and economic calendars, affected in no small part by the triggering of Article 50 and the snap General Election held in June. Today, the Chancellor set out his plans for economic prosperity, with the UK’s small businesses firmly positioned at its core.
Today’s announcement has presented The Enterprise Investment Scheme (EIS) with a huge vote of confidence, testament to the wider context of the announcement, Hammond addressed several areas that are critical to the progression of Britain’s scaling businesses and the investor communities that support private sector development.
In particular, several changes were announced in connection with the new industrial strategy. Leading the charge was the announcement that the EIS investment limit for knowledge-intensive companies will be doubled, a welcome revelation alongside the numerous initiatives put in place to support Research and Development and tech-innovation for scaling companies. That said, at the time of writing, we stress the detail is pending, with a focus on how “knowledge-intensive” and “low-risk” yes to be quantified.
The core body of topline statements are summarised in IW Capital’s 2017 Budget summary available for download here. Over the next few days we will carefully examine the comprehensive budget report and accompanying documents and update you with a thorough review of the details stated.