Sajid Javid tipped to unveil Budget 2019 on or around October 21st

Chancellor Sajid Javid has been tipped to deliver Autumn Budget 2019 on Monday October 21st -- or the week commencing.

Based on the disclosures of four unnamed officials, the FT reported that Mr Javid will deliver his first Budget “in the week of the 21st,” assuming Britain strikes a Brexit deal with the EU.

If Britain ends up with ‘no deal,’ the expectation was said to be that an ‘emergency Budget’ would follow once the country’s fiscal needs emerge following such a non-negotiated exit.

It was not made clear by the newspaper, however, whether such an emergency economic package from the chancellor would be instead of the October Budget, or in addition to it.  

But if an agreement with the EU is reached, and the week of Oct 21st holds for Mr Javid’s Budget, it will represent the second bringing forward of a Budget to avoid a Brexit clash.

Mr Javid’s predecessor, Philip Hammond, did this last year by scheduling Budget 2018 on October 29th, because negotiations with the EU were timetabled for the subsequent weeks.

At the time, the contractor sector saw his early Budget as a sign that IR35 reform would hit in 2019, yet Mr Hammond actually delayed it and introduced the small company exemption.

Now, Mr Javid, has reportedly asked the Office for Budget Responsibility to draw up forecasts for him to cite at Budget 2019 on a ‘deal’ basis with the EU, as opposed to a ‘no-deal’ basis.

The former set of figures would give a much brighter fiscal picture for the new chancellor to present, allowing him to act on his ‘low tax’ mantra ahead of a potential general election.

The 'no-deal' figures, by contrast, would make spending on infrastructure like broadband and mobile connectivity, which Mr Javid backed at this month’s spending review, seem reckless.

Contractors will hope that whenever he does deliver Budget 2019, the former Deutsche Bank executive will remember stances he has taken on the Apprenticeship Levy, red tape and IR35.  

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Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
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