The UK government has published its Spring Finance Bill 2023, outlining its plans for taxation and spending in the coming year. The bill includes a range of measures aimed at boosting economic growth and addressing long-standing issues such as housing affordability and climate change.
One of the key proposals in the bill is a new tax on digital advertising revenues, which is expected to raise billions of pounds in revenue for the government. The tax will be levied on companies with annual global revenues of £500 million or more and will be charged at a rate of 2% on the revenues they generate from online advertising.
The bill also includes measures to support the development of new homes and infrastructure projects, including a new £10 billion fund to support the construction of affordable housing. Other measures aimed at promoting sustainable development include a new carbon tax on businesses, which will be based on the amount of greenhouse gas emissions they produce.
In addition to these measures, the bill includes a range of smaller tax changes, including adjustments to the personal allowance and income tax thresholds, changes to inheritance tax rules, and a reduction in the VAT rate for certain goods and services.
The publication of the Spring Finance Bill has been welcomed by some industry groups, who have praised the government’s efforts to support economic growth and tackle pressing social and environmental issues. However, others have criticized the bill for its focus on taxation and regulation, arguing that it could stifle innovation and entrepreneurship in key sectors of the economy.
