As budgets go, this was a relatively quiet one. Headline announcements were few and far between. By far the biggest controversy in the Chancellor of the Exchequer’s spring budget was the changes to National Insurance contributions for the self-employed (more about that below), but there were also some energy measures announced, including changes in tax relief for companies in the oil and gas industry.

What Wasn’t Mentioned

This budget seems as notable for what was left out as what was mentioned. Two areas that you’d think might have some relevance for the British economy in the near future: Brexit and the property market, didn’t figure once in the Chancellor’s speech. For now, it seems the Chancellor is being cautious – but at some point, these issues will have to be addressed.

Changes to National Insurance Payments for the Self-Employed

The Chancellor’s announcement that the main rate of National Insurance contributions for the self-employed is to increase from 9% to 11% over the next two years was the main talking point. Many media commentators were critical of the rise – saying it penalised hard working individuals. On average a self-employed worker could be paying £240 a year more National Insurance as a result of the rise. There was no rise in the rate of National Insurance paid by employees, so anybody looking to be placed by us will be unaffected by the rise.

North Sea Oil and Gas

In words seemingly devised to antagonise climate activists, the Chancellor said: “As UK oil and gas production declines, it is absolutely essential that we maximise exploitation of remaining [North Sea] reserves.” How do they intend to maximise this exploitation? One measure that the government introduced in the budget was intended to help smaller firms buy sites without becoming responsible for the expense of decommissioning them. The treasury helps with decommissioning costs in the form of a tax relief – this tax relief has now been expanded to newer companies to encourage them to take on projects where the decommissioning costs might previously have proved prohibitive. In some cases, these companies could even become a net beneficiary of the tax system.

With government tax relief helping companies profit from the North Sea, it could be a good time to get into the energy industry. Send us your CV today.