Following the general election on 12 December 2019, the Conservative Party has secured a parliamentary majority. Boris Johnson remains Prime Minister and the likelihood of his Brexit deal navigating through parliament is now more likely (by the end of January 2020), although the details of future trade deals will need to be negotiated, in principle before the end of the implementation period at the end of 2020.

It is expected that there will be a mini reshuffle on 16 December, followed by a bigger re-shuffle after the Brexit deal is through parliament. The Queen’s Speech, setting out the Government’s programme, is expected to take place on 19 December 2019, with a Budget likely to be announced in February/March 2020.

The Conservative Party manifesto includes the following proposals on finance and tax issues:

• to abolish employers’ National Insurance Contributions for under-21s and apprentices under 25
• promise not to raise the rates of income tax, National Insurance or VAT
• raise the National Insurance threshold to £9,500 next year, with an ambition to raise it to £12,500
• stamp duty surcharge on non-UK resident buyers
• reducing business rates via a “fundamental review of the system”. As a first step, they will reduce business rates for retail businesses, as well as extending the discount to grassroots music venues, small cinemas and pubs
• increase the Employment Allowance for small businesses
• look at ways the working of the Apprenticeship Levy can be improved
• increase the R&D tax credit rate to 13 per cent and review the definition of R&D
• review and reform Entrepreneur’s Relief
• set out a new anti-tax avoidance and evasion law. This will:
  • double the maximum prison term to 14 years for individuals convicted of the most egregious examples of tax fraud
  • create a single, “beefed-up” Anti-Tax Evasion unit in HMRC that covers all duties and taxes, from individual errors to deliberate noncompliance – which is put on a legislative footing
  • consolidate existing anti-evasion and avoidance measures and powers
  • introduce a new package of anti-evasion measures, including measures to end tax abuse in the construction sector, crack down on illicit tobacco packaging and further measures to avoid profit-shifting by multinational companies to avoid paying taxes
• implement the Digital Services Tax
• maintain support for creative sector tax reliefs and free entry to the UK’s national museums
• introduce a new levy to increase the proportion of recyclable plastics in packaging
• devolve responsibility for corporation tax to Northern Ireland
• review alcohol duty
• review IR35
• introduce a stamp duty surcharge on non-UK resident property buyers
• reduce National Insurance contributions for employers if they employ ex-Service personnel
• removal of VAT on sanitary products
• first Budget will prioritise the environment: investing in R&D; decarbonisation schemes; new flood defences; electric vehicle infrastructure; and clean energy.

A costings document has also been published.