The Spending Review is also expected to set out how the government will deliver on its promises to the British public through leading the transition to net zero across the country; ensuring strong and innovative public services; levelling up across the UK to increase and spread opportunity; and delivering its Plan for Growth.
Commenting on the Spending Review, the Chancellor said: 'Despite the worst economic recession in 300 years, we have not only got people back into work through the Plan for Jobs but continued to deliver on the priorities of the British people.
'At the Spending Review later this year, I will set out how we will continue to invest in public services and drive growth while keeping the public finances on a sustainable path.'
One of the issues many expect the Chancellor to address is the reform of basis periods. The shake-up means the end of the present system where calculations are based on the accounting year of the individual business. The reform also paves the way for the introduction of Making Tax Digital for income tax self assessment (MTD for ITSA) from April 2023.
Details are still emerging, but the aim is that the tax year 2023/24 marks a new beginning. Profits (or losses) assessed will be those occurring in the actual tax year, regardless of accounting year end.
The Chancellor could also address the introduction of Making Tax Digital for Income Tax. Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for Income Tax from their next accounting period starting on or after 6 April 2023.
To learn about our Budget Summary, visit here.