Chancellor Jeremy Hunt has delivered his Spring Budget, which was accompanied by a full fiscal statement from the OBR. As it is now predicted that the UK is going to narrowly avoid a recession this year, the Chancellor was focused on delivering the Government’s growth plans.
Ongoing funding for the levelling up agenda and the extension of some business tax reliefs are included in the raft of measures that have been announced.
Paul Britton, CEO, Thames Valley Chamber of Commerce said “It is positive that the Chancellor has taken some steps towards addressing the current employment gaps, with childcare costs paid upfront for parents moving into work or increasing hours and 15-30 hours free childcare from age 9 months up starting next year.
“The changes to R&D tax relief regime for SMEs spending more than 40% of total expenditure on R&D is also welcome, as is the news that the Domestic Energy Price Guarantee which will remain at £2,500 for the next 3 months.
“However, this Budget fails to address the help needed by businesses who are faced with increasing energy costs and SMEs need greater incentive to support investment in their staff and drive innovation.”
Shevaun Haviland, Director General of the British Chambers of Commerce, said “The Chancellor has acted to address the unfilled jobs blighting our economy. It is especially good to see the help on childcare and for over 50s workers. The plans for full capital expensing are also a step in a right direction to offset the rise in corporation tax, but the jury is out on how much it will help businesses compared to the Super Deduction scheme.
“Almost half of businesses have told us they will struggle to pay their energy bills from April, and they cannot invest when they are fighting to survive. There is little in today’s announcement that will provide comfort to these firms.
“The Government also failed to reform business rates which we have repeatedly called for. If the UK’s innovative growth industries are to remain competitive on the world stage, then Government must shift the dial further on investment, both within the UK and from overseas.”
