This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

Business sector reaction to the UK Budget

17 March 2016

While yesterday's budget has been largely welcomed by the business sector thus far, the response has been less than enthusiastic overall.

Concern was expressed by legal firm Trowers & Hamlin over the adding of 1% on leases over £5m and the effect this will have on investment.

Real Estate team partner Adrian Leavey said this appears to be "contra to the drive to encourage inward investment to the UK. While much of this may be swallowed by larger institutions, what is effectively a sudden, overnight charge may be difficult for smaller, non-institutional investors.

"Investors are encouraged by offers from all over the world – my concern is that this may make the UK less attractive in this area, albeit marginally. Notwithstanding, it won't help an already nervous market where Brexit and inward investment taxes are already having an effect on the cautious," said Mr Leavey.

There was a more positive response to Chancellor George Osborne's efforts from the CBI. Director-general Carolyn Fairbairn described it as a "stable budget" following "a year of surprises".

Ms Fairbairn said the Chancellor had chosen to support business "to grow the economy out of the deficit.

“Businesses will welcome the Chancellor’s permanent reforms to business rates – taking more small firms out of the regime and changing the uprating mechanism from RPI to CPI, which the CBI has long been calling for," she continued.

“The reduction in the headline Corporation Tax rate sends out a strong signal that the UK is open for global business investment, and reforms to Interest Deductibility are in rightly in line with the international consensus.

“Changes to the tax treatment of losses will make it harder for larger scale-up firms and companies that have been through tough times to play their part in the recovery.

“Progress on some key infrastructure projects, from HS3 to 5G, are positive. Investors and companies will be encouraged by the greater clarity and simplification of the Government’s energy policy," said Ms Fairbairn.

EEF director of employment and skills policy Tim Thomas said employers would appreciate the decision not to add further cost to the Apprenticeship Levy and national living wage, while hoping that the "decision not to meddle with pensions tax relief proves long-lasting".

"Some businesses will see changes to national insurance rules on termination payments and more red-tape for those legitimately using personal service companies as unnecessary and potentially costly," he said.


Print this page | E-mail this page

MOST VIEWED...


Article image Why the Law Says You Need a Nappy Bin Disposal Service

At home, parents are used to disposing of their babies’ used nappies the same way they do any other domestic waste - bagging it up and sticking it in the rubbish for general collection.Full Story...

Article image Importance of compliance further confirmed by recent asbestos cases

Two incidents involving asbestos in buildings have further emphasised the need for vigilance in all areas of the FM sector to provide protection for building users and avoid the potentially damaging results.Full Story...

PTSG installs lightning protection at Faraday's former place of work

Finalists announced for the PFM Partnership Awards 2018

Management auditing systems overhaul announced

http://www.fsifm.comhttps://www.abm.co.uk/https://www.emergencyuk.com/pfmb18