Member Article

Autumn Statement: North West business reactions

The Autumn statement was delivered today.

North West businesses give their comments on Chancellor George Osborne’s official statement.

Pensions and Savings

Joint managing director of Wealthcare, Richard Harris said: ’The removal of the 55 per cent tax on pension funds post-75 will undoubtedly encourage people to focus on pension planning.

“We are living longer, and the ability to use pension funds in conjunction with tax planning is a positive move by the government.

“Dovetailed with the implementation of workplace pension schemes, this will continue to highlight the importance of investments, long-term goals and planning for the future.

“The Autumn Statement also brings good news for ISA holders. When an ISA saver dies, a spouse or civil partner will be able to transfer the ISA wrapper along with continued tax advantages.

“The Chancellor has also raised the investment cap on ISAs to £15,240 from April 2015.

“Personal savings strategy is clearly high on the government agenda.”

Youth Employment

David Brimelow, managing director of polythene manufacturer and supplier Duo UK, commented:“ We are whole hearted supporters of the Apprenticeship Scheme but, while the abolition of National Insurance contributions for under 25s will help, it won’t fix the fundamental problem of an education system which isn’t vocationally focused.

“If the Government really wishes to support manufacturing, it should consult with businesses and develop a robust vocational training programme designed for school leavers who want careers, not jobs.”

Healthcare

Senior Director and Head of DTZ’s Manchester, John Keyes, comments: “There are major challenges to reform the health sector and this will require significant investment in hospital buildings but more particularly in primary health properties and in the community care sector.

“Local authorities need to lead local public service reform, including much more shared use of property with local partners. Delivery is the real challenge and there is a real worry that the public sector has lost the experience and expertise to drive forward the necessary transformations at the pace required.”

Business Rates

FSB Regional Chairman for Manchester & North Cheshire Simon Edmondson said: “We were seeking a business friendly Autumn Statement, and that’s precisely what we got. Businesses will be breathing a sigh of relief that Small Business Rate Relief has been extended again.

“While the FSB is delighted to see the double small business rate relief remain for another year, news that a full review of the outdated business rates system will happen is something we’ve long argued for.

“The current system is out of date and frankly needs to be put out to grass. It’s complicated, opaque, regressive and unresponsive to changes in economic conditions.”

Stamp Duty

Tim Adcock, tax partner at Mitchell Charlesworth said: “Stamp Duty is further set to be fundamentally changed as of midnight tonight.

“Instead of a single rate applying to the whole purchase price, stamp duty rates will only apply to the part of the property price that falls within each band.

“In short the system will work in a similar way to income tax and makes it far more progressive. “Previously the amount of Stamp Duty payable jumps at the threshold limits.

“This new system will stop this happening, and hopefully aid individuals to invest in residential property.

“Home buyers as well as residential property investors should also see this as a welcome change.”

R&D tax credits

MD from Plastic Card Service, Rob Nicholls, said: “The Government is only focused on helping businesses in regeneration areas and is too fixated on supporting digital start-up companies.

“Established, manufacturing businesses like ours also need support, so today’s announcement feels very much like a backwards step.”

Group tax director at Champion Accountants, Gill Molloy comments: “At a time of ongoing austerity, it’s great to see the Chancellor delivering a timely boost to Britain’s army of entrepreneurs and SMEs.

“Growth once again remained at the heart of his speech, with extensions to Entrepreneur’s Relief and increases to the Research and Development (R&D) rate, from 225% to 230%, providing further lucrative benefits in encouraging investment.”

Northern Powerhouse

UKfast CEO Lawrence Jones commented: “I’m obviously pleased to hear about the Sir Henry Royce Institute (although I’m not sure why it’s only being named after one half of Rolls Royce) and I’m actually coming round to the idea of a Mayor.

“I wasn’t keen before, but now I’ve heard Tom Bloxham is in the running, I think he’d do a fantastic job.

“He’s an exceptionally capable businessman and he knows a lot about buildings and architecture, which are both important to Manchester.

“As to whether the Northern Powerhouse idea is genuine or just rhetoric, it’s too early to tell, but they have some good ideas.

“What I would say, however, is that there needs to be more of a focus on getting fibre around the UK and getting faster connectivity so we can compete better in business.

“Success isn’t all about rail and roads; most interactions can take place online without having to lose money and time on travel.

“Our future is digital.”

Manchester Head of national law firm Weightmans LLP Richard Corran, said: “The Government’s promise of serious investment in Manchester arts and culture, combined with a substantial financial injection into the city’s transport network and infrastructure, is very good news indeed.

“Funding plans for a new Theatre of the North, together with plans to modernise northern transport links, not to mention the impact of the investment in HS2, will all go a long way to maintaining Manchester’s attraction as a major headquarters location for UK and overseas businesses.”

Small Business

Managing director of Hale-based The House Crowd, Frazer Fearnhead, said: “At first glance, the extension of the Funding for Lending scheme, the £400 million to extend government-backed venture capital funds which invest in fast growing SMEs and the £500 million of new bank lending to SMEs.

“However, small business owners have continued to experience barriers to lending despite economic growth.

“As a result of restricted bank credit and ineffective government intervention, small firms are looking at alternative solutions to boost their working capital.

“Crowdfunding and peer-to-peer lending has grown exponentially as an industry since The House Crowd was formed in 2012.

“Many platforms offer opportunities for individual investors to pool their money together to support a business for a monetary return or perk.”

Infrastructure

Re:allies’ Lee Parkinson, said: “The government’s announcement relating to investment in infrastructure projects is undoubtedly good news for the construction sector.

“Recent studies indicate that every £1 invested in the sector creates £2.84 in total economic activity, together with significant multipliers in terms of employment and skills provision.

“While the investment is welcomed, it’s vital to ensure that the increased demand - linked to the investment for construction trades and materials - is managed in an intelligent way in order to avoid supply and demand issues which in turn will lead to price increases and overheated supply chains.”

This was posted in Bdaily's Members' News section by Sophia Taha .