Chancellor delivers on Northern transport pledge

CHANCELLOR George Osborne delivered on the pre-Budget hype over the Government’s £300m commitment to HS3 linking Manchester and Leeds by rail and commitment to add a fourth lane to the overcrowded trans-Pennine M62.

Included in the pledge were upgrades to the A66 and A69 roads to further improve connections for Carlisle and the far North of England, as recommended ahead of the Budget by the National Infrastructure Commission.

And there was encouraging new for the areas of the North hit by floods in December.

A 0.5% insurance premium tax hike to 10% with the proceeds diverted towards a £700m flood defences fund was also announced.

The tax had already increased last year from 6% to 9.5%, but premiums have been falling after a crackdown on so-called “ambulance chasers” and personal injury claims.

Flood defence schemes will be targeted at York, Leeds, Calder Valley, Carlisle and Cumbria.

The Chancellor’s announcements were welcomed by Andrew McFarlane, director and head of North West at the Manchester and Liverpool offices of real estate advisors Colliers International, who said: “As the Chancellor’s vision of a Northern Powerhouse becomes a reality by developing from a brand into a product, his commitment to implement the recommendations of the National Infrastructure Commission has to be welcomed by all throughout the North West, Yorkshire and the North East of England.  

“As prospects for the global economy continue to weaken, it is all the more important for us to create transformational infrastructure that improves the economic performance of the North by connecting people and places more effectively and quickly.

“Together we are stronger and by acting as one, the great cities and towns of the North can become an effective economic counterweight to London, something which could not be achieved if acting independently of each other.”

Meanwhile, Osborne also brought welcome relief for businesses by delivering sweeping alterations to thresholds for SMEs.

The Chancellor eliminated business rates for companies in properties valued at less than £15,000 – up from the previous threshold of £6,000.  Businesses with property at £18,000 to £15,000 will pay the higher rate.

“For half of all British business, rates will fall or be abolished altogether,” said Osborne. “This is a £7bn tax cut for  shopkeepers. We are open for business and this a Government which is on your (the businesses’) side.”

Businesses would also benefit from changes to stamp duty with Osborne implementing recommendations from the IMF over simplifying the system.

He said the commercial stamp duty will have a zero rate band on property purchases up to £150,000, 2% on the next £100,00 and 5% rate above £200,000.