Against a backdrop of better than anticipated data around UK economic growth and employment, the UK Chancellor presented his second Budget of the year on Wednesday, announcing a series of ambitious spending plans designed to facilitate an economic recovery.

It is worth remembering that the UK still has record levels of debt and borrowing, the furlough scheme is winding down, inflation is rising and there are supply chain and workforce issues. Nonetheless, ’better than anticipated’ data was a reasonable place to start from.

Many of the spending announcements continued the focus on ’levelling up’ the UK to support local governments, regions and large infrastructure projects.

Perhaps surprisingly, there was very little mention of green initiatives, although they may be being held back for maximum impact at the COP26 summit.

We may have expected some changes to properly mark the freedoms afforded to the UK by Brexit. However, there was little to suggest that championing Brexit remains a priority at this stage.

The dust has barely settled since the Chancellor’s confirmation earlier this year in the Spring Budget of both a future increase in National Insurance contributions as part of the ’social care levy’ and a significant future corporation tax increase. As such, it is perhaps unsurprising that there were no further major tax changes announced.

Of interest locally is the announcement of a consultation around importing (more formally ’re-domiciling’) foreign companies into the UK.

This is a move designed to encourage such entities to settle within the UK corporation tax regime and which may well be of relevance in future for Isle of Man incorporated companies holding UK property assets.

There was an increase in the minimum wage to £9.50 which compares with the current level of £8.25 in the island.

It will be interesting to see whether the Isle of Man feels that it should follow suit or at least go some way to bridging the gap in rates.

There was another reference to a forthcoming review of the VAT treatment of fund management services, which has been delayed. The Budget refers to a consultation upon options to simplify the VAT rules.

This appears to be a shift from the previously stated objectives of a review, which were to ensure that the UK was a competitive jurisdiction for locating fund with VAT not being an inhibiting factor (a point of significance in the Isle of Man marketplace). Hopefully, this opportunity for reform and simplification is not wasted.

Given the impact of the pandemic and the real term funding cuts that preceded it, time will tell if the proposed spending really delivers on the UK Government’s commitment to ’world class public services’ and investment in growth.

Although there were no significant tax changes, there were clear hints towards a lower taxed future with the Chancellor’s intention to build a pre-election war chest clear to see.