Partner Article

Businesses post wish lists to Chancellor

UK businesses eagerly await the Chancellor’s Autumn Statement tomorrow lunchtime, as a gloomy outlook casts a shadow into his spotlight.

An extension to austerity measures is widely anticipated, as are cuts to pension tax relief, and cancellation of planned fuel duty rises.

PwC also suggested there could be further reductions in corporation tax, beyond the 22% its due to reach by 2014, to 20%.

Action on tax avoidance and details of Vince Cable’s business bank are likely to feature in the statement, however businesses and business bodies have also drawn up wish-lists.

The Institute of Directors would like to see decarbonisation happen at lower costs; spending on infrastructure and simplification of the tax system, amongst other items.

Simon Walker, Director General of the Institute of Directors, said: “The Chancellor is in a difficult position. The global economy has been much rockier over the last two years than most people expected; growth has been weaker and public borrowing higher than we hoped. Some are calling on George Osborne to abandon his targets and embrace bigger deficits, but he must hold his nerve. It is only through controlling public debt that Britain will retain the confidence of the markets and create strong foundations for recovery.

“Swift action to establish a British shale gas industry would be a welcome initiative to develop a new sector in this country, and reduce our reliance on expensive imports. If the Chancellor moves to give shale an emphatic green light, he will have manufacturers and consumers cheering him on.”

The North East Entrepreneurs’ Forum suggests the Chancellor should raise the £100,000 maximum annual threshold for Seed Enterprise Investment Scheme (EIS); extension or enhancement of tax breaks for normal EIS; financial support for businesses to develop business plans; mentoring support post investment; and a common sense approach to Regional Growth Fund grant management.

Nigel Mills, chairman of the Entrepreneurs’ Forum, said: “As The Chancellor prepares his autumn statement we think he should have North East entrepreneurs front and centre of his policy. It is entrepreneurs who will grow the private businesses that will provide the jobs and taxes to help UK succeed in the years to come.

“Generally, the North East is being weaned off the grant culture that existed for many years, which we see as a good thing, however, this needs to be replaced by other forms of more direct help to support growing businesses. The Entrepreneurs’ Forum wants to see changes to the way the Enterprise Investment Scheme is offered and to see formal mentoring support to businesses that have received investments.”

London plumbing entrepreneur, Charlie Mullins, would like to see a reduction in red tape and wants the Government to put apprenticeships at the heart of the skills policy, suggesting they should not be “some scheme hijacked by big business to funding the creation of future generations of shelf stackers rather than the engineers and technicians we really need.”

Mr Mullins added: “The Autumn Statement provides the perfect opportunity for George Osborne to take a very public stand against the big corporate tax avoiders. After considerable head shaking and finger wagging in the direction of these morally-bankrupt corporations, it’s time for action.

“Tax avoidance has become as socially unacceptable as drink driving. Now we need the laws to clamp down on these economic leeches and make them contribute to an economy they are sucking dry.

“Measures to improve the business landscape for small and medium-sized businesses have to be in the first few pages of the Statement.”

Diana Montogomery, chief executive of the Construction Products Association, suggested more should be done to encourage take up of the Government’s Green Deal initiative.

She said: “If the Green Deal were to provide only 10% of what the Energy Minister stated it would do, this would generate an additional £4 billion for the economy as a whole. Furthermore, this activity would benefit SMEs and boost employment, throughout the country and not just in the South-East.

“Despite Treasury being more vocal on infrastructure investment in recent months, most schemes have struggled to get off the ground. We hope that any announcements made in the Autumn Statement this week do not share a similar fate.”

This was posted in Bdaily's Members' News section by Tom Keighley .