Fairer taxation of digital economyHammond also hinted towards how the government would level the tax playing field in the digital economy. He said: “In the autumn, we published a paper on taxing large digital businesses in the global economy and today we follow up with a publication that explores potential solutions.” The latest paper details plans to tackle VAT fraud by overseas online sellers, as well as further solutions to ensure multinational digital businesses pay a fair share of tax. Digital payment methods were also acknowledged, and Hammond announced a consultation to gather the requirements of both business owners dependent on digital payments and consumers relying on cash.
Late paymentsThe chancellor made an additional pledge in support of small business owners by putting late payments under the spotlight. He reassured that government would consider ways smaller suppliers could be supported, and claimed the Conservative Party continued to be ?the part of small business and the champion of the entrepreneur?. Welcoming Hammond?s pledge, Mike Cherry, chairman of the Federation of Small Businesses (FSB), said: ?The chancellor is absolutely right to commit the government to eliminate the scourge of late payments, which place cruel financial pressure on more than eight out of ten small businesses. ?The poor treatment of smaller suppliers by many bigger companies is both unacceptable and holds back growth and productivity.?
Broadband connectivityThe Spring Statement was also used to allocate the first wave of funding for the government?s ?190m Challenge Fund ? a fund announced in the Autumn Budget 2017 to deliver full-fibre broadband to homes and businesses across the UK. Hammond confirmed that the first round would see investment of ?95m into 13 regional areas to roll-out superfast connectivity.
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