Chancellor urged to put business at heart of Budget
Chancellor Philip Hammond is being urged to ensure support is put in place for businesses when he announces the Budget next week.
Whilst the UK continues to enjoy record employment levels and sustained demand for its exports, Stuart Rea, a solicitor at FBC Manby Bowdler, is warning that now is not the time to rock business confidence.
With Brexit negotiations looming, there is more uncertainty than ever surrounding the state of the UK economy.
Speaking ahead of next Monday's Budget, Mr Rea said it is crucial UK businesses approach the coming year with a positive economic outlook.
“The Chancellor speaks of his commitment to low taxation, but at the same time alludes to the potential necessity of small tax increases to both individuals and businesses," he said.
“However, with productivity growth still weak; the skills shortage continuing to be a concern and an air of uncertainty deterring some businesses from investing and growing, this would be a bad move.
“The UK is strong in many respects, but greater levels of business confidence must be nurtured. If that means promoting low taxation Keynesian Economics in the short-term, then I believe that’s preferable to punitive taxation hikes right now.”
The Department for International Trade recently reported on the continued strength of UK exports but as Mr Rea said, these can only be sustained and built on when businesses are supported in their growth:
“If businesses here in Shropshire are provided with the environment to grow and invest, they’ll exude confidence which will not only serve them well here in the UK, but also on the world stage.
“The CBI has suggested increasing the Annual Investment Allowance to £500,000 for two years to boost innovation and competitiveness; a review of current levels of capital allowance; and the introduction of a Business Growth Accelerator to provide 12 months relief from business rates when carrying out improvements to commercial property.
“These are all moves we’d welcome. Whether they’re likely to be realised remains to be seen, but with less than a week until his next Budget, I urge the Chancellor to keep business at the heart of the UK’s future success.”
