Partner Article

Budget Day special: Reaction from across the region

Chancellor Darling delivered his last Budget before the election yesterday with some commentators describing it as neutral, and others claiming it merely targeted the rich to boost Government coffers.

Key proposals which could impact on the North East’s business community included: Plans to pump investment into ports to aid the manufacturing of wind turbines, a vow to offer more support to digital and video games firms and an ongoing commitment to low carbon technologies.

Click here to read more of the key points, and here to see the Chancellor’s speech in full.

Meanwhile, we spoke to businesses across the North East to gauge their reaction:

…

John Richards, managing partner at North East accountants and business advisors RMT, said: “Overall, perhaps as expected so close to the election, the Budget contained very few tax related measures. The real impact will follow from the second Budget after the general election.

“It was good news for North East business owners, who will benefit from the doubling of the lifetime limit, from £1m of gains to £2m, for the ten per cent rate of capital gains tax on disposals of companies and businesses. The Chancellor further confirmed that, contrary to rumours, there was to be no change to the rate of capital gains tax. Regional businesses will also benefit from the doubling of the annual allowance for investment in plant and machinery from £50,000 to £100,000, which is eligible for 100 per cent tax relief.”

….

Emma Pattison, marketing executive at machine repairs and services firm Houghton International, said: “ Overall it looks fairly positive for business like ourselves. Especially with the business rates cut for a year from October that will obviously always help. And with the sector we work in the green investment fund for the wind energy sector look extreamly positve with the government planning investing in that.“

…..

Mike Parker co-founder and director of Newcastle-based digital media agency Orange Bus said: “I am relatively unfazed by this announcement for the digital sector. It is all very well saying that 90% of the UK will benefit from faster broadband and using landline phone tax to fund this but what about the other 10% of the population? It is important when addressing online speed to ensure that we don’t create a digital divide of have’s and have not’s? “Can we really take anything seriously in a budget this close to a general election? If the polls are to be believed and the Conservatives gain power they’ve already come out and said they would scrap this tax.

“I would like to see fast broadband for all. As more and more services turn to online delivery IPTV (BBC IPlayer), Streaming Music , Games etc it is important that nobody in the UK is left behind. Providing better and more available services is vital to driving the economy within the digital industry.”

……

Stephen Hall, tax partner at Deloitte in Newcastle, comment****s: “We warmly welcomed the proposal of the ‘Patent Box’ when it was announced by the Chancellor in his Pre-Budget Report in December 2009. The Chancellor reiterated the commitment in his speech today. However, the documentation has yet to be published and there will undoubtedly be a need for everyone to work hard if the new regime is to be introduced in Finance Bill 2011 as planned.”

…..

Tony Sarginson of manufacturing body EEF said: “ We did welcome that the chancellor gave a neutral budget and not a give away budget. We were afraid that had he given away a lot it would have to be clawed back. He didn’t do that he didn’t take any risks in the recovery of the economy so we were pleased about that. We didn’t want an extravagant budget and we certainly get that.“

…..

James Ramsbotham, North East Chamber of Commerce chief executive, said**:** “The Chancellor’s £2.5bn budget to boost businesses is dwarfed by the £6bn tax on jobs he delivered last year when he hiked employer national insurance contributions by 1%.

“While there were some welcome announcements today there was little clarity on how the public finances will be tackled in the medium term which businesses need to have the confidence to invest.”

……

This was posted in Bdaily's Members' News section by Ruth Mitchell .