Spring Budget 2017: What Marketers Need to Know
Phillip Hammond delivered his first Budget as Chancellor last week. Whilst it was perceived as being a fairly lacklustre affair by many, there were elements that had a relevance to marketers. From education to technology, here are some of the key proposals and facts marketers need to be aware of:
- The economy is growing faster than expected
Growth in the UK economy picked up more than expected in 2016, despite the turbulence of the Brexit vote. The Office for Budget Responsibility (OBR) had initially predicted the economy would grow by 1.4% in 2017, however the Chancellor announced a new forecasted figure of 2%.
- .Large investments to be made in 5G technology
In a bid to make the UK one of the leaders for 5G, Phillip Hammond announced that £16 million would be invested into trialling the technology with a view to making it available nationwide. The Chancellor also announced that a further £200 million would be invested in local projects to provide more reliable broadband networks. Consumers are becoming ever more demanding when it comes to their mobiles, and staying connected it fast becoming a perceived necessity. It’s important marketers remain in touch with these evolving expectations and stay alive to the opportunities they afford.
- T-Levels to be introduced by autumn 2019
The Government announced the introduction of T-levels. T-levels will provide 16-19 year olds with technical skills across a variety of industries and disciplines; which many argue are desperately needed to boost UK productivity. With a huge demand for digital, creative and design skills in marketing, these qualifications are sure to be welcomed by many in the industry.
- New ways to protect consumers
In an effort to protect consumers and make them better aware of their legal rights, the Chancellor also announced that the Government will be introducing new ways to protect us. This includes making online terms and condition simpler and fining companies that mislead or mistreat customers. Marketers need to be careful, therefore, to be clear and fair when it comes to promoting their products, services and content.
- Sugar tax confirmed
Phillip Hammond also confirmed that the controversial sugar tax will go ahead in 2018. The tax; which will affect soft drinks with more than 5 grams of sugar per 100ml, will be a blow for many marketers in the UK soft drinks market. Companies will have to seriously rethink their marketing strategy if they want to persuade customers to pay more for their products.
If you spotted anything else in last week’s budget that stood out to you from a marketing perspective, please let us know. In the meantime, enjoy and good luck with your marketing!