Reacting to the Chancellor’s Autumn Statement, Paul Britton, CEO, Thames Valley Chamber of Commerce said: “The Chancellor set out the anticipated tax cuts for business and there are encouraging headlines to address planning and national grid issues, but the details were light on how the UK will respond to growing competition for inward investment and business support for exporters, which are ‘must haves’ for the future competitiveness of the Thames Valley.
“We are encouraged that the Chancellor responded to our asks locally and through the British Chambers of Commerce for simplified and expedited planning, but we need more definite support and policies to keep local businesses engaged in creating future skills provision through Local Skills Improvement Plans and HMG support to co-invest and get the transformational Western Rail Link to Heathrow underway”.
Shevaun Haviland, Director General, BCC, said: “Today’s statement provided some welcome remedies at a time when businesses of all sizes need certainty and security from the Government in the difficult months ahead.
“The decision to make full expensing permanent will be a boost to companies wanting to invest. Our research shows that 34% of businesses have already benefited from the policy, rising to 47% for manufacturers.
“We have long called for the electricity grid to be upgraded to help companies transition to net-zero. In our recent net-zero survey, more than a third (37%) of businesses told us they were not getting what they needed from the grid, in terms of energy supply and connectivity. If we can we reduce grid connection times it will make a big difference.
“We welcome the planning reforms and investment announced by the Chancellor today to help tackle this huge infrastructure problem. Businesses trying to invest in a low carbon future will now be looking for a speedier path to grid connection.
“Smaller firms will be relieved to see a package of measures that alleviate the cashflow problems they face, such as continued business rates relief for hospitality, retail and leisure, and new rules to help them get paid on time.
“The Government’s plans to support people back into work have the potential to help grow the economy. There are just under a million unfilled vacancies in the UK and three quarters of businesses tell us they cannot get the staff they need. Plans to support people suffering ill health could make a real difference, but there must be a focus on getting them into work that matches their capabilities and potential.
“Business investment is the lifeblood of local economies, creating jobs and supporting public services. The Chancellor has today taken a step in the right direction, but nothing can be taken for granted and we must all continue to focus on encouraging companies to grow.”
Martina Razaq, property partner, B P Collins said: “The Autumn statement’s focus on mechanisms to reduce inflation has meant that unfortunately no changes were made to the stamp duty regime, which was hoped by many including first-time buyers or young families looking to move into larger homes as well as overseas buyers. There may be further announcements on stamp duty in the Spring Budget, but this is unlikely given we are less than a year from a General Election.
Either way any change in stamp duty needs to be substantive, as further adjustments to the bandings is unlikely to make any real long-term difference to buyers, other than create another cliff edge situation, like we saw with the Stamp Duty Land Tax “holiday” in 2021.”
Laura McDonagh, Associate in the Wills, Probate and Estate Planning Team at leading Berkshire and Swindon law firm Gardner Leader said: “Many will welcome the news that the conservative government have focused on reducing National Insurance instead of cutting the rate of inheritance tax. Cutting the 40% rate would of course have been attractive to the 4% of estates in the UK that pay inheritance tax, but it would not have affected the majority of families.
“A move to increase the nil rate band threshold will actually benefit more families, particularly many in the south-east, who are facing rising house prices and therefore are more likely to fall within the group of people who pay the death tax in the future. Shadow Chancellor, Rachael Reeves, has questioned whether the rumoured cut to inheritance tax has been cancelled entirely or simply delayed. Perhaps this is something we will see the government reconsider in the Spring.”
