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Autumn Budget 2017: What do Yorkshire businesses hope to hear?

The Chancellor’s first Autumn Budget will take place this wednesday, with Yorkshire businesses keen to gain clarity over what shape the economy will take moving forward.

Faced with prosperity pressures, tax travails and Northern expectations at large, the Chancellor has as much to deal with as much domestically as he does in securing Britain’s future on the international stage.

We’ve gathered a collection of Yorkshire business opinion, from an array of sectors, to determine how the region is feeling ahead of the Budget.

Join us in a Bdaily Long Read as we explore just exactly what it is that organisations and companies from the region want to see.

The Brexit Budget?

UBS Wealth Management

Karan Sejpal, Regional Head for Yorkshire and the North West at UBS Wealth Management, believes, like most, Mr. Hammond will struggle to avoid Brexit in his speech.

“The businesses we work with will be hoping to see further clarity around Brexit negotiations and of course policies which make the UK an attractive place to do business.

“Yet at this point in the negotiations the Government’s hand may be slightly tied. Whilst lack of further clarity on Brexit next week would be disappointing, most Yorkshire businesses will soldier on with business as usual as they have done this past year.

“Whatever is, or more likely isn’t, announced next week, Brexit may present an opportunity to rebalance the UK economy away from Financial Services and the South East. We’ve long argued the UK economy is unbalanced, so this shift would be welcome.

“Our clients will also be listening for updates on the Northern Powerhouse initiative. In our view, for this to really make an impact we need to see a significant commitment to funding digital infrastructure and training. This would help local workers improve skills and compete with other regions on output per hour.”

Manufacturing and Infrastructure

Y Pellets

Yorkshire-based Y Pellets is one of the UK’s fastest growing suppliers of premium, biomass wood pellets.

Delivering thousands of tonnes of sustainably-sourced pellets to homes and businesses nationwide, the company is part of a larger international organisation that operates in Austria.

Managing Director Neil Holland would like to see the Government assume a much longer-term infrastructure vision in the Budget.

He explained: “Companies like Y Pellets operate within a fast-growing, competitive, global energy market and without efficient and durable transportation links, whether road, rail or sea, businesses and economies simply can’t compete.

“We operate a Europe-wide logistics network and our delivery vehicles are on the road constantly in the UK so as a company, we rely heavily on good transportation links.

“But for businesses to improve their perfomance and productivity and make a real difference to the economy, the Government, in my opinion, needs to take a more proactive and futuristic approach to infrastruture.

“The country cannot afford to fall behind therefore significant investment and a long-term vision to support competitiveness is a must in order to attract organisations to the UK as well as connect UK business communities with others across the globe.”

Ultrimax Coatings

Chris Hoare, CEO of industrial paint supplier Ultrimax Coatings, said: “The country needs a good kick start so that in 2018, we can really take off and show the rest of Europe and the world we are a manufacturing and productive nation.

“This will mean an increase in the minimum wage and living wage and an increase in old age pensions as this part of the population spend what they have got, and keep all the wheels of industry turning.

“Also, corporate tax for small and medium size businesses needs reducing. On top of this, there should be a tax on dividends for directors below £100,000 per annum, to help this sector grow and employ more staff in well paid jobs.

“The big corporate companies with the multi billion pound balance sheets need to be brought to account and support this, and be forced to pay their fair share instead of making massive profits in the UK, and then avoiding tax by stealth.”

Technology

Smoothwall

Michael Marks, CEO at private software company Smoothwall, is hoping for further funding surrounding cyber security.

He explained: “Following a year that included the biggest cyber attack on the NHS and the Petya malware attack across the continent, cyber security needs to be an absolute priority for investment; without extra funding and protection, the Government risks undoing a lot of the hard work in protecting people, businesses and public institutions. So far, the near £2bn cyber windfall doesn’t seem to have had quite the desired impact.

“Along with cyber security, I would like to see continued investment in the Enterprise Investment Scheme (EIS). It’s thought that the EIS investment may be reduced from 30% to 20%, thereby reducing entrepreneurial growth, and the UK could suffer consequently in the long term.

“As a country with a great track record of innovation, reducing investment in this scheme will have a detrimental impact on driving technology and business growth at a time when we need more people to ‘take that step’.”

Tax

JM Glendinning

Nick Houghton, managing director of Yorkshire headquartered insurance, financial and health and safety services group JM Glendinning, expects tax to feature prominently in this Budget.

He commented: “In terms of what I want to see from the Chancellor this week, my biggest issue is Insurance Premium Tax (IPT). I am sick to death of seeing it creeping up almost year on year. Motor insurance and employers’ liability are compulsory insurances, which means that people and businesses are being taxed in double digits on something we are told we have to buy. It’s ridiculous.

“I’d like to see clarity around the government’s plans for IPT. If the plan is to turn it into another VAT then Mr Hammond needs to come out and say so, then at least we all know where we stand.

“I would also like to start to see some IPT breaks for people and business that are doing the responsible and taking steps that are proven to create safer drivers, such as fitting telematics in vehicles.

“These are big issues facing people and businesses in our region and the Budget needs to reflect them, but I’m preparing myself to be underwhelmed!”

Tailor Made Media

Samantha Ware, MD of York-based digital marketing agency Tailor Made Media, is hoping for the Chancellor to help both businesses and the younger generation in relation to tax.

She commented: “I would also like to think that the Autumn budget will include holding down taxes for employers - no surprises please!

“The government has previously announced that Corporation Tax would decrease to 17% by 2020, and I think we need to see a stronger commitment to this from Mr Hammond in this Budget.

“There needs to be a clarity around incentives for the North which will boost local productivity and interest from overseas investors. There have been hints in the news around fresh funding for the Northern Powerhouse. Let’s see if this really is at the “top of (the) agenda” as Mr Hammond was quoted as saying said back in September.”

Skills

Dynamic Networks Group

James Baird, CEO of Leeds headquartered IT firm Dynamic Networks Group, wants more help from the Chancellor regarding skills in Yorkshire.

He commented: “Our business is growing fast, and we’re building the team at both senior and apprentice levels. I’d like to see more consistency in funding for skills development in Yorkshire in the Budget.

“Currently, there are ‘pots’ of funding available through so many different providers that it’s difficult to keep track of who’s delivering what support and how businesses can access it.

“These funds appear out of nowhere and seem to disappear just as quickly, which makes it hard for businesses to budget for long term skills development.”

Insolvency

R3

Eleanor Temple, chair of R3 in Yorkshire and a barrister at Kings Chambers in Leeds, is hoping for the Chancellor to provide support to SMEs, with the latest official figures showing a 15% year-on-year rise in the number of corporate insolvency cases across England and Wales.

She said: “We have one of the world’s best insolvency and restructuring frameworks, and it helps to attract both businesses and investment to the UK by ensuring companies’ financial difficulties can be resolved quickly and effectively, but reform is clearly required to stay ahead of the competition, especially with so much emphasis being placed on British businesses tackling new export markets after we leave the EU.

“Ideas that have been previously mooted by the government included giving business directors a ‘last chance’ protection from creditors in order to turn their firms around before a formal insolvency procedure becomes necessary, and introducing reforms to ensure struggling companies receive vital continuity of supply from utility providers while they try to resolve their financial difficulties.

“R3 would welcome such changes, with some alterations, as we believe they could make an incredibly valuable addition to the UK’s business landscape by making company rescues more feasible and thus making it more likely that the jobs these firms support can be saved.”

Pensions

Walker Crips

Katie Machin, Chartered Financial Planner at Walker Crips in York, is hoping for Mr Hammond to take action on UK pensions.

She said: The abolition of the lifetime allowance on pension funds would be welcomed by many. With a limit on how much people can contribute, it seems excessive that we also need a further limit on how much an individual can save over their lifetime. Any mooted limit on tax relief claimed on contributions would further compromise pension plan assets.

“Regarding pension contributions, I would also like to see a reversal of the Money Purchase Annual Allowance, or at least an increase back up to £10,000 pa. However, this seems unlikely considering the allowance was reduced in the last Spring budget.

“Nevertheless, many people want to, or in fact need to semi-retire and this stops them from saving in a tax efficient manner for their future full retirement.

“With the country facing up to the prospect of an ever-expanding pension crisis, to further reduce the reliefs available to pension savers and penalise those who have managed to save diligently throughout their lifetime seems counter-productive.”

Bdaily will be publishing a Yorkshire Autumn Budget reaction piece following the Chancellor’s announcement on wednesday. To submit your thoughts to be considered for publication, reach Yorkshire Editor Nick Hill at nick.hill@bdaily.co.uk. In the meantime, why not publish your thoughts ahead of the Budget in the comments section below?