Positive reaction in wake of Budget
THE Federation of Small Businesses has praised Chancellor George Osborne for listening to its calls for a more simplified tax system for SMEs.
Policy director Mike Cherry said that in a Budget constrained by the need to reduce the deficit and a gloomy economic outlook, the Chancellor had taken heed of FSB concerns.
“In particular, FSB members have campaigned hard to make Small Business Rates Relief permanent, and expand it – and the Chancellor has heeded our calls, taking many small firms out of the system altogether,” he said.
“The combined measures announced on business rates – the single biggest tax cut in today’s Budget – will be viewed by our members as a welcome and important step on the road to fundamental reform. In addition, online retailers will benefit from steps to secure a level playing field for smaller online businesses on VAT.
“Freezing fuel duty will be universally welcomed by small businesses right across the country.
“Furthermore, the new devolution deals, alongside increased investment in roads, rail, and flood defences, should give a much needed boost to the UK’s infrastructure.
“Altogether, these measures should help to drive productivity and boost small business confidence levels, which have faltered recently in the face of a number of domestic policy and global economic challenges.”
There was also a guarded welcome over the cut to small business rates from Adam Burke, director at the North West offices of real estate company Colliers International in Manchester and Liverpool.
He said: “It’s only when rateable values are published in September 2016 that will we know whether businesses will be better off. It is too early to say whether the move to CPI and changes to Small Business Rates Relief are going to offer the actual reductions Osborne claims.”
And he went on to say today’s announcement was a clear admission that delaying the revaluation was a mistake.
Meanwhile Ed Cox, director of IPPR North welcome the ‘green light’ from the Chancellor for major transport schemes in the north.
He said: “The announcements will heighten expectations though that government will ultimately commit the fresh billions required to finally see some spades in the ground.
“And transport investment has to be for a real purpose. Beyond a Northern Transport Strategy we must develop a Great North Plan to align transport, energy, housing and other key drivers of economic growth into a coherent strategy for the north – like in most European regions.”
There was also praise from The Pensions and Lifetime Savings Association after Osborne sat down.
Its chief executive Joanne Segars, Said: “The Chancellor’s decision to make no changes to pension tax relief is the right one. We are pleased the Chancellor has listened and recognised that huge changes to pension tax relief will not act as an incentive to save.
“The introduction of a Lifetime ISA is an interesting initiative to help younger people add to their pension and lifetime savings.
“We look forward to working with the Government to help make sure that the Lifetime ISA does help younger people build up their savings.”
