Budget 2015: Thumbs-up from support groups

“A DIFFICULT balancing act” is what the UK needs and what Chancellor George Osborne’s Budget has delivered this year, according to the nation’s business organisations.

Whilst there were few surprises in this year’s budget, a casualty of the upcoming General Election, but the changes to corporation tax and business rates were a highlight, as were the greater investment in technology and support for industry.

John Cridland, CBI director-general, said: “Stability and consistency are what businesses need to grow and prosper. This Budget sets the tone, providing a clear plan for fiscal health and growth.

“With business investment a crucial driver of growth, the Chancellor has signalled his intention to continue the Annual Investment Allowance. We want it to be made permanent in the Autumn Statement at £250,000 – this will fire the UK’s economic kiln by spurring smaller firms to invest in plant and machinery.

“The reduction of the headline rate of corporation tax to 20% next month, is a meaningful step in making the UK the most competitive tax regime in the G20 and will help to attract investment.

“The oil and gas industry, which supports 450,000 UK jobs and is a major contributor to GDP, has been given a much-needed boost with the reduction to the supplementary charge and other incentives.
This will help address concerns over job losses and investment freezes, but pressures remain due to low oil prices.

“Giving savers greater freedom over their pensions, including creating a secondary annuities market, boosts choice but after a period of flux what’s needed now is breathing space for the industry and consumers to get to grips with all the changes.”

John Allan, national chairman, Federation of Small Businesses, said: “Our members will be encouraged by many of today’s announcements. The review into business rates is long overdue.

“When complete, it must deliver tangible benefits to businesses and not end up as just another report that sits on the shelf. His commitment to raise the Annual Investment “Allowance to an appropriate level will provide the certainty needed for businesses to plan and invest something badly needed if the UK is to raise its productivity.

“The abolition of Class 2 National Insurance contributions for the self employed is also a welcome step. There were some helpful measures to help with getting connected. The extension of the superfast connection vouchers will help small businesses in more urban areas. We look forward to reviewing the details of the new digital communications infrastructure strategy. “

John Longworth, director general of the British Chambers of Commerce (BCC), said: “Once again, it appears that the Chancellor has pulled off a difficult balancing act, maintaining fiscal discipline while ensuring that necessary deficit reduction doesn’t undermine the UK’s growth prospects.

“Lower business taxes, allowances for investment, and targeted support for sectors, regions and small companies all contribute to confidence, investment and job creation.”

Terry Scuoler, chief executive of EEF, the manufacturers’ organisation, said: “The Chancellor gets three cheers from manufacturers for the measures he included to boost exporters.

“His decision to bring forward compensation for industries facing vast and uncompetitive energy costs, such as steel makers, is also welcome but the full package needs to be put in place as soon as possible.

“In addition he has committed to a stable and competitive tax regime, which we wholeheartedly support.”