Budget 2015 – Osborne urged to keep growth focus

GEORGE Osborne’s final Budget of this parliament is unlikely to produce many surprises, but with an election weeks just weeks away, the Chancellor will be keen to highlight his stewardship of the economy on Wednesday lunchtime.

While the coalition partners stance on taxation means that a traditional pre-election giveaway from a Conservative chancellor is unlikely, there could still be some interesting moves around transport, skills and regional power-sharing.

TheBusinessDesk.com’s coverage of Budget 2015 will be produced in association with accountants and business advisers Grant Thornton, and we will be producing an overview after the speech and then in-depth regional coverage later on Wednesday afternoon.

Carl Williams, managing partner of Grant Thornton in the North West said the Chancellor has a “unique opportunity” to set in motion business growth policies irrespective of who wins the election.

Williams said he would like special focus to be afforded to helping high growth companies, particularly “oft overlooked” medium-sized businesses looking to, or already exporting.

“The Northern Powerhouse proposals need further development and we’d welcome further commitments to empowering city regions, particularly on transport and skills and further consideration of business rates; to invest in coast-to-coast transport connectivity in the North; and to look at ways of expanding international flights from regional airports such as Manchester.
 
“In terms of exports,  the latest ONS figures show that the UK’s trade deficit widened last year to £34.8bn – the widest trade gap since 2010, largely driven by a steep fall in UK exports.  In its Autumn Statement submission, Grant Thornton set out proposals for a tax relief for the initial costs of researching and entering a new export market. The firm would welcome the launch of a Treasury consultation on this idea, which now has widespread support from a significant number of business organisations including CBI, Forum of Private Business, Institute of Directors, British Chamber of Commerce and ICAEW.
 
“Skills and training is another key area. We welcomed the Chancellor’s announcement in the Autumn Statement of an exemption from employer’s National Insurance Contributions for apprentices under 24 years old; but would now encourage the Treasury to extend this further, to apprentices of all ages, in order to further stimulate employer investment in training. The firm also supports the government’s continued commitment to give employers direct control of apprenticeship funding and would welcome further progress in implementing this at Budget.”

In terms of regulation – consistently seen as a barrier of growth for businesses – Williams said the Chancellor should commit to speedily implementing all the Office for Tax Simplification’s recommendations.