Budget 2011: RSM Tenon survey predicts little incentive for entrepreneurs

BUSINESS leaders in the West Midlands have said they see the Budget offering little incentive to entrepreneurs, with most expecting to be worse off after March 23.

The picture emerged in response to a new survey prepared by TheBusinessDesk.com, in association with leading accountants RSM Tenon, which asked what measures the Chancellor might introduce when he delivers his Budget in 13 days’ time.

Those responding to the survey said they felt George Osborne would do little to encourage entrepreneurs, despite the Government saying it wants to promote growth.

Asked whether the Budget would contain growth incentives, 62% of respondents said they thought it would not.

However, most do expect there to be further increases in duty (38%), with 31% feeling another rise in fuel duty is inevitable despite already escalating prices, while the same number think further green tax initiatives are likely.

Changes in the Government’s approach to setting tax policy have been welcomed by 52% of respondents, while another 30% believe it is a good idea but are concerned it could delay change.

The controversial subject of university tuition fees received a mixed response with 44% saying they favoured the current proposals being implemented – 30% said they favoured the current proposals being scrapped in favour of a return to a means tested grant system and 26% said the current student loan scheme should be maintained.

Changes to the amount of tax relief able to be claimed on pension contributions also split readers.

Asked if they thought the proposals to allow everyone tax relief on a maximum of £50,000 contributions regardless of income were fair, 62% said they were not.

The survey demonstrated that most people are expecting to be worse off after Budget day, with 41% of responders predicting both their personal affairs and those of their business to suffer.

A quarter (24%) said they were expecting to be worse off personally although they thought their business would benefit, while 17% thought they would be better off personally but that their business would suffer.

There was support for incentives for businesses to invest in capital, while the majority of responders (63%) also supported moves to impose a tax levy on wealthy ‘non-doms’.

The majority of responders also said their business had been little impacted by the rise in VAT to 20%, with 45% reporting a negative impact and 34% saying it had had no effect on trading volumes.