PLAGUED by Brexit uncertainty the Spring Statement was of little reassurance to businesses – but there are some positives hidden in the small print, according to MHA Monahans.

The Old Town-based accountant has given its run-down of the budget, which was announced by Philip Hammond on the same day as a key vote over whether to reject a no-deal Brexit.

The chancellor announced no major tax or spending changes without a clear road ahead and used his speech as an opportunity to lobby against the no-deal outcome, which MPs later joined him in rejecting

Partner at MHA Monahans Dominic Bourquin said: “Hammond offered the promised Brexit 'deal dividend' in one box and no-deal economic disaster in the other.

“If there was anyone left in any doubt as to which Brexit box Hammond would prefer MPs to open, there won’t be now.”

There was, however, a glimmer of reassurance for companies concerned about the government’s Making Tax Digital scheme.

Under the plans HMRC will ask VAT-registered businesses to comply with a new digital tax return regime next month.

Dominic added: “Not only has Hammond confirmed that there will be a “light touch” approach to penalties in the first year of implementation he has also confirmed that Making Tax Digital won’t be mandated for taxes until after 2020.

“That’s particularly good news for small businesses who have been trying to get to grips with their new obligations.”

The chancellor brought forward a reduction in the apprenticeship levy from 10 per cent to five per cent which will now come into force in April 2019, a year earlier than expected.

“This will no doubt be a welcome boost to apprenticeship support for SMEs,” he added.

“Despite revising the projected economic growth downwards for the time being, Hammond is still promising us a bright future and this seems to be the most important thing to take away from his statement this year.

“I suspect we may see a few more changes in the autumn, when the way forward for Brexit will hopefully be a little clearer.”