ECONOMY
BCC responds to Chancellor’s Budget
Chancellor of the Exchequer Rishi Sunak has unveiled the contents of his Budget in the House of Commons. As well as pledging a significant increase in public spending, Mr Sunak announced tax cuts for businesses and a reduction in air duties for flights within the UK. The planned increase in fuel duty is to be scrapped, while retail, hospitality and leisure businesses will benefit from a temporary 50% business rates discount of up to a maximum of £110,000. Meanwhile, the £1 million Annual Investment Allowance has been extended. The British Chambers of Commerce (BCC) has given its reaction… Shevaun Haviland, director general of the BCC, said: “There’s much to welcome in this Budget for business communities across the UK. The Chancellor has listened to Chambers’ long-standing calls for changes to the business rates system and this will be good news for many firms. This will provide much-needed relief for businesses across the country, giving many firms renewed confidence to invest and grow. However, these changes must be the start, rather than the end point of the reforms to this broken system. “Additional investment in skills, infrastructure and better access to finance will be key drivers for our economic recovery and provide longer-term benefits and opportunities for businesses across the country. “While investments announced in the Budget will take time to bed in, government should consider other action that will relieve immediate pressures, particularly on smaller businesses, such as urgent review of the shortage occupation list to allow for short-term visas in key sectors, and an SME energy price cap. “If firms face unexpected bumps in the road, the Chancellor must be prepared to take further action to get the economy firing on all cylinders again.” Commenting on the announcement on business rates reforms, Suren Thiru, head of economics at the BCC, said: “We’re pleased that the chancellor has listened to our call to deliver more frequent revaluations. Moving to a three-year-cycle will help to reduce the huge changes in rates bills that clobber firms and enable them to plan their growth strategies with greater confidence. “However, a system that responds more frequently to changing economic conditions must be made easier for firms to navigate.
The current system already generates a significant number of appeals, and if it’s not made simpler, more frequent valuations would exacerbate this problem.”
a welcome boost toward that goal and will be vital in achieving our net zero targets by funding more efficient, reliable and greener public transport.”
Commenting on freezing the business rates multiplier and a new temporary relief for retail, hospitality and leisure properties, Suren Thiru said: “We’re pleased that the Chancellor listened to BCC’s call to blunt firms’ business rates bills amid soaring inflation. The freeze in the business rates multiplier and support for retail, hospitality and leisure will provide businesses with more financial headroom to repair business cashflow diminished by the pandemic and rising cost pressures, and to invest more in growth plans to power the recovery.”
Commenting on research and development funding, Hannah Essex, co-executive director at the BCC, said: “Greater funding will encourage investment in R&D, which should boost the UK economy at a time when productivity growth remains weak.
Commenting on the Annual Investment Allowance extension, Suren Thiru said: “This should provide a major incentive for firms to crowd in investment, with firms continuing to report that this is a crucial tool which gives them the confidence to push ahead with their plans.” Commenting on funding for childcare, Jane Gratton, head of people policy at the BCC, said: “Additional funding for childcare providers will help parents access high-quality, affordable childcare and remain in work, ensuring employers retain skills and people progress in their careers.” Commenting on infrastructure investment, Jane Gratton said: “It’s great to see the Chancellor recognise the importance of local infrastructure in driving our economy forward and levelling up communities across the country. This investment will be
“However, to ensure that UK firms remain competitive on the global stage, it’s vital that greater investment in R&D is supported by retention of our intellectual property.”
“Additional investment in skills, infrastructure and better access to finance will be key drivers for our economic recovery and provide longerterm benefits and opportunities for businesses across the country.” Business Connexions | 17
