Autumn Budget 2017: North West firms continue to weigh in on Chancellor’s speech

At Bdaily, we brought you a raft of coverage during and immediately following the Chancellor’s Autumn Budget speech on Wednesday (November 22).

Business leaders are keen to have their say on the announcements and how they’re likely to affect the economy of the North West, so here we’ve assembled a second round of commentary from key stakeholders across the region.

Jane Parry, tax partner at PM+M

“All in all this Budget was a bit of a damp squib as the Chancellor had no real room for manoeuvre - thanks mainly to the ongoing saga that is Brexit.

“In my opinion, it actually threw up more questions than answers, which isn’t great for a Government that needs to promote a sense of stability in what are pretty turbulent times.

“It’s positive that he recognised that frictionless trade is important but there’s nothing he can really do to address it right now, as everything is dependent on the outcomes of our negotiations with Europe. The challenge will be to ensure that we don’t drown in a sea of trade bureaucracy once we reach 29th March 2019.”

Anthony Woodings, president of ICAEW Manchester

“The Autumn Budget has brought home the fiscal and economic challenges facing the UK. Our debts continue to grow and eliminating the deficit is rapidly becoming a five parliament problem and a millstone for future generations.

“Turning round the slowdown in the UK economy has to be the immediate priority. This will require new, creative approaches to improving productivity which despite all the efforts remains stubbornly low. Businesses need to match Government investment in skills and new technology if the UK economy is to recover its momentum.

“The Chancellor resisted the temptation to introduce even greater complexity to the tax system, especially for small businesses. But once again, he missed the opportunity to start the long overdue job of simplifying it. The current tax code is bloated and complicated. It remains a regulatory burden for business that undermines confidence, quashes entrepreneurialism, and inhibits growth. But it is also becoming out-dated, if not obsolete.”

Laura Harper, commercial IP partner at Shoosmiths Manchester

“The Chancellor’s announcement of an investment of £500 million in a range of technological initiatives ranging from artificial intelligence, to 5G and full fibre broadband should help support high growth, high productivity businesses in the North West region and beyond.

“The promise of a further £2.3 billion allocated for investment in research and development and the main R&D tax credit increased to 12 per cent is also welcome and will help bring the UK’s investment in its science and technology sectors more in line with some of our main global competitors.”

Matt Haworth, co-founder at Reason Digital

“It’s encouraging to see such a focus on building digital skills in today’s budget. Putting clear numbers to these promises, such as the training of 12,000 computer science teachers, demonstrates that the government is poised to take clear steps towards developing and maintaining the skills needed for the success of businesses in every sector.

“As a digital business with a presence in the North West and London, the recently announced Tech Nation network, as well as the £30m investment in digital skills distance learning courses, are extremely positive steps forward. A renewed focus on the UK’s digital capabilities will be beneficial for businesses in all sectors.”

Gareth Smyth, group managing director at Hilton Smythe

“It’s pleasing that the Chancellor has listened to the business community and brought forward planned changes to business rates, linking them to the Consumer Price Index, rather than the Retail Price Index, much sooner than planned. It is generally agreed that the CPI provides a more accurate representation of inflation and the change will ensure that businesses are billed more fairly and subsequently save billions of pounds.

“I would have liked to see further action taken to tackle issues with business rates, including seeing digital companies pay their fair share and bring them in-line with high street businesses.”

Chris Oglesby, chief executive of Bruntwood

“Increasing investment in research and development spending as part of the government’s new Industrial Strategy is to be welcomed and we look forward to seeing further details for critical sectors such as life sciences when the White Paper is unveiled next week.

“We are encouraged by the focus on investing in future technologies that will shape our future, and look forward to launching our new technology incubators in Manchester and Leeds in the coming months, which will support innovation in artificial intelligence and the data economy, two growth areas for the UK highlighted by the Prime Minister this week.”

Jade Chan, senior associate at Hill Dickinson

“For our clients, this will be welcome news as we are seeing a real surge in tech start-up companies and non-institutional investors with an appetite to invest in these types of business in the north west region.

“This, alongside the government’s pledged investment into digital skills, should certainly promote growth in these industries in the medium term.

“Despite rumours that changes were afoot to the VAT registration threshold, the government has announced that it will remain at £85,000 for the next two years. This will come as a relief to small business owners who would otherwise have to either pass on the VAT charge to their end-customer, or absorb it into their own profit margin.”

Adam Hall, managing partner of Falconer Chester Hall

“Make no mistake: that was a budget for the development sector.

“The focus on high density urban development, particularly around transport hubs, makes absolute sense. Cities are where the jobs are created and people want to live. Top marks for recognising that a lot of potentially productive land is unviable because of historic contamination.

“The £1.1bn strategic sites fund is a step in the right direction, but I would have expected it to be larger. It will help councils and developers meet remediation costs and enable more urban brownfield sites to be developed. I’d expect numerous councils in the north west to be scrambling for the application rules right now.”

Paul Brown, tax partner at HURST

“There were a lot of spending commitments but few, if any, revenue-raising measures. The longer the speech went on, the more the expectation rose that here had to be a sting in the tail – but it never came.

“This was all the more surprising in the context of significant reductions in growth expectations (which surely must mean lower tax revenues). Many of the revenue- raising measures that were predicted simply did not materialise.

“Disappointingly, there were no further reductions in the corporation tax rate, although further help on business rates is a plus and more support for SME housebuilders would seem to be a positive move.”

Adrian Kemp, director at WSP

“Doubling investment for housing through the Housing Infrastructure Fund – which is targeted at those schemes where infrastructure is the only ‘missing link’ – in response to the measures set out by the Housing White Paper, will give a much needed boost to the UK’s ‘broken’ housing market.

“This is absolutely key for the North West, not only to fulfil its ambitious housing targets, but also to further strengthen the argument for infrastructure investment that will support new sites that have been identified for housing.”

John Keyes, international partner and head of Cushman & Wakefield Manchester

“The award of £243 million to Greater Manchester from the Transforming Cities Fund for more local transport improvements should help productivity and support new housing development across the city region.

“Greater Manchester is well placed to benefit from the additional capital investment of £3.8 billion by 2022-23 in the health and care system, given progress made under the devolution plan. Monies need to be spent promptly and efficiently to deliver the service benefits and revenue savings that are needed to sustain the system.”

Kevin Taylor, tax expert at WNJ

“The decision not to lower the VAT threshold is very welcome news for small businesses, many who would have struggled with the burden of administration and the impact it would have on their operations.

“The increase in R&D tax credits is also to be welcomed as a positive sign of commitment to encourage innovation and it is worth remembering this is of benefit not just to high-tech companies but businesses in all sectors of the economy. The doubling of the EIS limits for certain ‘knowledge-intensive’ companies is a further boost. The move to increase business rates in line with CPI rather than RPI is also a step in the right direction.”

Miles Gibson, head of UK research at CBRE

“There was a proliferation of medium size proposals in today’s Budget on housing, planning, cities, business rates and infrastructure, but little radicalism to catch the eye of real estate decision makers.

“Nevertheless CBRE was pleased to see further action on business rates and significant spending on housing supply measures. It was refreshing to see specific acknowledgement given to build to rent development.

“But there was an immediate watering down of the Chancellor’s 300,000 homes a year target, announced only a few days ago.”

Lisa Wilson, head of tax at Cowgill Holloway

“The Government is encouraging innovation as a key strategy for this term; focusing on technological advancement and competitive advantage, especially in the scientific, technological and creative industries. I’m pleased to see a positive focus on businesses who invest in this in some of the announcements today.

“The updates to R&D relief will only affect large businesses and SMEs with grant funding, but the current R&D regime is very generous- albeit there is still a lack of awareness regarding the types of activities that qualify for R&D tax relief such as new or improved product, process or service.”

Andrew McFarlane, director and head of North West at Colliers International

“The Chancellor’s Budget reaffirmed his Government’s commitment to regional devolution with the creation of a £1.7bn transport fund for city regions, a second devolution deal for the West Midlands and further investment into HS2, amongst other initiatives.

“His announcement of further investment into rail infrastructure, in particular, funding for mobile and digital connectivity on Trans-Pennine routes, will be music to many Northern commuters’ ears. However, despite the Chancellor’s claims that productivity is key to the health of our overall economy, HS3 was left out. Investment in infrastructure to shorten journey times from Sheffield to Manchester and Manchester to Leeds is vital if we are to realise the economic growth potential of the North.”

Mark Jones, Assured Wealth

“So one of the most anticipated budget announcements in years is over and the average man and woman in the street are not much better off. For those earning under £46,350 (basic rate taxpayers) they will be whole £70 a year better off from April 2018 and those earning over £46,350 (high rate tax payers), they are £200 a year better off, thanks to the Chancellor (Philip Hammond) changes to the personal tax rates from April 6th 2018. I don’t think your average Joe will be rejoicing just yet!

“Not exactly a big giveaway and those part-time workers earning less that £11,000 a year will see no changes at all. After all, what would £70 a year buy you?”

Sara Lawton, Construction Impact Framework

“I am disappointed but not surprised that the topic of tax avoidance has … been avoided. An equitable system would support the small business’ that prop up the economy; why is small business is expected to fill the financial gap created by allowing large corporations to avoid taxes that would bring in additional revenue.

“The budget poses lots of questions, for example, how will the government reach its target of building 300,000 new homes a year when it is failing its current target? What percentage of these homes will be built for social housing? What percentage will be affordable for home buyers?

“The current social housing crisis is hitting both employed and unemployed households alike - how will the budget and the building of new homes address the fundamental social issues that underpin the crisis?”

Lee Murphy, founder of Pandle

“It has overall been a good, but perhaps not ground-breaking, Budget for Britain’s SME businesses. Those in the tech space and Britain’s thousands of small online retailers can certainly celebrate modestly the measures and signals… albeit not on strong cider.

“While the self-employed and small business owners won’t be keeping any more of their income, threats such as the VAT reduction and changes to national insurance happily did not happen, which will be a huge relief for Britain’s 5.3 million microbusinesses and self-employed in particular.”

Suzanne Benson, partner at Trowers & Hamlins (Manchester)

“From a North West perspective it is encouraging to see the confirmed commitments in the budget both for the funding of transport and infrastructure to support the Northern Powerhouse and, following on from the Mayoral announcements yesterday, the £28 million allocated to fund the Housing First projects in Manchester, Liverpool and the West Midlands.

“The planned programme of intensive support for rough sleepers proposed by the Housing First initiative combined with the £20 million funding allocated in the Budget to identify and assist those in private rented sector who are at risk of homelessness are positive steps to start to address the significant homelessness problem that is particularly prevalent in the north west cities.”

David Carmichael, employment partner at Fieldfisher

“This was as most Budgets are a political budget with plenty of announcements designed to attract voters and to mask the significant reduction in GDP growth figures. There was assurance of additional spending to assist with other parts of the Northern Powerhouse, such as Newcastle upon Tyne, Redcar and tees Valley and the promise of a £1.7 billion transport fund to be spent by mayors is a mark of progress across the country and will hopefully benefit the North West.

“The Chancellor also mentioned the North West specifically with the announcement that Trans Pennine trains would receive Wi-Fi connectivity, however it would be useful to have more information about how the £300m will improve High Speed infrastructure as until these plans are laid out, there is no true confirmation of how this could benefit the growth of the Northern Powerhouse.”

Daniel Hynd, managing director of Promenade Estates

“People are saying that this was a budget for the development sector but there was far too little for regional economies. £134m for Liverpool for transport initiatives, whilst welcome, is a drop in the ocean.

“The disparity between London and the regional economies demanded a full-throated response, and what we got was a mildly embarrassed cough.

“Building more houses is of little use if there aren’t the quality, high-paying jobs to pay people’s rent and mortgages. There was nothing meaningful around regional economic development and, when you have councils reluctant to offer head leases or rental guarantees, the speculative development of the quality office stock needed to attract big business into the region simply won’t happen.”

Haydn Rogan, tax partner at Weightmans LLP Manchester

“Abolishing stamp duty land tax for first time buyers is a welcome measure, obviously designed to woo younger voters.

“However, this change will not work in isolation. More targeted affordability funding is definitely a step in the right direction, but it will take time for any real change to feed through and translate into an increase in housing supply. In the meantime, any stamp duty land tax savings on offer could be offset by an increase in house prices.”

Craig McCall, operations and technical director at Gorilla Accounting

“The Autumn Budget announcement made by Philip Hammond stopped short of mentioning the words ’IR35 and ‘National Insurance’, but instead focused on personal allowance and the higher-rate tax band.

“The Government understands that longer-term reform is needed to make the ‘employment status test for employment rights clearer’, which refers to the CEST tool which has caused confusion and chaos due to its temperamental and undependable nature.

“Despite a bold and bruising Spring Budget 2017, it’s fair to say that the Autumn Budget announcement was a mellow event for Contractors and Freelancers across the UK.”

Alan Cotterill, mortgage adviser with JustMortgages

“The best was saved to the last by the chancellor at lunch time today in Westminster when a fairly predictable Autumn Budget was delivered at a very high level with the details left for his audience to deceiver in their own time.

“The front page grabbing announcement was definitely hoped for by many, but certainly was not guaranteed. This was the legislation that will impact on First Time Buyers especially here in the North West which was First Time Buyers will pay ’‘0’’ Stamp Duty on property purchased up to £300k. The very good news being this will have a very positive effect on most First time Buyers locally.”

James Dow, Dow Schofield Watts

“We very enthusiastic and supportive of the Government’s efforts to extend the scope and reach of British Business Bank’s activities. They are unlocking capital and helping address a market segment which has been poorly supported since 3i’s exit from the regional ‘smaller deal’ market.

“Having set up Dow Schofield Watts Business Angels earlier this year to help Northern tech businesses to access finance, we are also pleased to see a new investment programme to support business angels networks in the regions.”

Bob Ward, North West senior partner for EY

“The £1.7bn Transforming Cities Fund to improve transport does underline the Government’s commitment to improving connectivity across the Northern Powerhouse.

“The Transforming Cities Fund will finally give metro mayors power and means to do their jobs and support their mission to drive economic growth and investment in local communities. It will also help reduce red tape which will expedite decisions on housing and infrastructure – key to attracting businesses and talent.

“The fact that half of the Fund is allocated to the six combined authorities with elected metro mayors puts those cities that have agreed devolution deals in a strong position, particularly Liverpool and Manchester, as the per capita allocation gives them a larger share of the pot.”

Mike Parkes, technical director at GoSimple Software

“There were fears in the build-up to the Budget that the VAT threshold would be targeted by the government in a bid to claw-back tax over the coming years.

“It’s been noted that £85,000 is high compared to elsewhere in Europe (£15,600 in Germany), yet the Chancellor also recognised the benefit this has to the self-employed and small businesses.

“For many, the decision to freeze the VAT threshold for the next two years was seen as welcome news. However, as inflation increases this does in fact represent a real-time reduction. Ultimately, it could draw some people over the threshold ahead of the implementation of Making Tax Digital for VAT returns in April 2019….”

Andrew Parker, managing director at SDL Auctions

“We understand the Chancellor’s action, as there are many empty homes across the country which need to be refurbished into a rentable condition or sold to investors for development.

“Today’s announcement will focus people’s minds if they have an unoccupied property as they will see the current council tax rate doubling, and in some cases – when this encourages landlords to sell – they might consider auctions as the quickest route to sale.

“For anyone considering this, it’s important to underline that an auction sale isn’t the last resort. It’s often the best way to achieve market value with the comfort of speed and security.”

Christian Spence, head of research and policy at Greater Manchester Chamber of Commerce

“The Chancellor had a difficult job in balancing competing expectations of both fiscal prudence and economic reform, with these having to be delivered against markedly lower growth forecasts for the UK economy, weak productivity and the challenges both abroad of Brexit and at home with housing, benefit reform and stagnant wages.

“There are a number of positive measures brought forward, particularly around housing and stamp duty, universal credit and investment. However, perhaps the key point from this budget is that the long-term growth rate of the UK economy looks now to be only around 1.5% with continued weak productivity, and it is through this lens that all other policies should be viewed.”

Ian Wolfendale, Jumpstart

“The plan to bring UK research and developing spending in line with the world’s other rich nations within a decade is just the fillip that beleaguered businesses needs against the Brexit backdrop of uncertainty.

“The commitment to a long-term approach to research and skills training in an attempt to improve productivity signals that Britain is serious about maintaining its primary role as a trading nation.

“However whilst welcoming the increase in the R&D tax relief rate for large firms, it’s disappointing not to see a similar increase in the relief available to SME’s. Over 80% of claims in the last financial year were from SME’s – with a cost to the treasury of £1.3bn. Claims by large companies cost the Treasury £1.5bn – yet only large companies are benefitting from a rate increase.”

Philip Brennan, head of Businesscomparison.com

“There was plenty in this budget for North West businesses to feel positive about. The £1.7 billion transforming cities fund is great news for the Northern Powerhouse.

“I would also welcome revisions to the way business rates are calculated and to Staircase tax which has caused anxiety for many small business owners. The extra £2.3 billion for R&D investment is another positive step. The additional £3 billion over the next two years for Brexit preparations is crucial for businesses but whether it’s enough to allow them to plan and invest with confidence remains to be seen.”

Alison Birch, director of VAT at Mitchell Charlesworth

“Following the recent report from the Office of Tax Simplification there has been concerns that the VAT registration threshold was going to be dropped in the Budget (potentially to £20,000 which is the average threshold in the EU).

“As a result the plan to keep the VAT registration threshold at £85,000 will be very welcome to small businesses although the 2 year freeze will inevitably capture a number of businesses who have been hovering under the VAT registration threshold.”

Paul Kenyon, co-founder and co-CEO at Avecto

“Today’s announcements highlight proactive and tangible steps towards strengthening the UK’s position as a world leader in technology. Commitments to developing and maintaining technology skills at every level are absolutely necessary for the technology sector to thrive.

“As well as the announcement to train thousands more computer science teachers, the Transforming Cities Fund should act as a step towards attracting more skilled professionals to Northern cities like Manchester, in order to build on these existing hubs of innovation.

“Going forward, it’s vital for businesses to keep up this momentum by working with universities and schools to ensure the talent pool continues to adapt to the rapidly changing needs of the technology industry.”

Helen Griffin-Booth, director at Bluerow Homes

“The move to abolish stamp duty for first time buyers is a great announcement which will go some way to helping aspiring homebuyers get onto the property ladder.

“With the Chancellor himself stating that the number of 25-34 year olds has dropped to just 38% over the last thirteen years, hopefully this measure will keep the market moving and give prospective homeowners a more positive, optimistic outlook to owning their own home.”

Brian Tenner, interim CEO at NCC Group

“As new technologies are being developed at speed, ensuring that security is an in-built consideration is crucial. It’s extremely positive to see such a clear commitment to this from the government, and we hope that today’s announcement will also reinforce this message across industry.

“The government’s decision to act on the pressing issue of skills shortages is another welcome step in the right direction. Following the disheartening recent news that more than half of schools don’t offer computer science GCSEs, the promise of training of an additional 8,000 teachers is more than encouraging.”

Damian Hanson, co-founder of CircleLoop

“In line with the Chancellor’s thoughts on the technological revolution, he announced £500m to cement UK leadership on 5G, fibre broadband and artificial intelligence technologies.

“Although the details of this are yet to announced, undoubtedly this will support the emerging shift for businesses towards cloud technology which requires almost constant connectivity.”

“Similarly, the announcement of £30m to trial new solutions on the TransPennine route to improve mobile and digital connectivity on trains supports our proposition of the importance of a better connected world for businesses to really help them thrive.”

Deborah Vickers, channel director of MoneyGuru.com

“The brackets and rules of stamp duty is one of the most biggest grips for the housing industry. Stamp duty clogs up the system can be very discouraging to people first starting out on the property ladder as well as people moving up the chain or looking to downsize.

“First time buyers already have a lot of expenditure and stamp duty can be very expensive on top of this so the announcement that all first time buyers purchasing a house for up to £300,000 will be exempt from Stamp Duty altogether, along with the increased commitment to Help To Buy scheme will come as welcome relief to those looking to get a foot on the ladder.”

Noam Handler, tax partner in the North West at EY

“It appears that the Chancellor has listened to calls from business, spending £175m a year on increasing the Research and Development tax credit. While the UK’s rate is lower than other locations, the government argues that its simplicity and ease of access makes the UK’s system competitive.

“The one percentage point increase from 11% to 12% from 1 January 2018 represents the highest rate for large companies since the introduction of the R&D tax credit regime and reinforces the UK’s message that it wants to be the home for innovation. This change will be welcome news for those investing in R&D who now have opportunities to invest around the globe.”

David Lathwood, lead director in the North West at JLL

“The £300m investment to connect the existing rail network to HS2 will simply deliver what’s needed to make it work. It’s no compensation for the full electrification of the network and the HS3 crossing from Leeds to Manchester that we were once promised.

“A modern rail network is what the region has been crying out for and many business leaders will be frustrated with another budget that lacks bold, concrete plans to deliver this.”

Dan Burn, director of MA6NITUDE

“We welcome the Chancellor’s commitment to the Northern Powerhouse in today’s Budget. Investment in transport infrastructure will mean that logistics locations across the region will be better equipped to serve our emerging sectors as well as the increasing level of export activity at our major foreign trading ports.

“Looking ahead, an increased focus on improvements to Northern roads will be needed to elevate mounting strain on the network due to continued economic growth.”

Daniel Hollingworth, head of EV readiness at EA Technology

“We welcome the Chancellor’s announcement and its recognition that the electric vehicle revolution is an important part of the Government’s climate change agenda.

“This financial package follows the announcement of the Automated and Electric Vehicles Bill in the Queen’s Speech which will allow government to mandate charge point provision in public places and ensure minimum standards to enable large-scale smart charging.

Lucy-Rose Walker, CEO of Entrepreneurial Spark

“We broadly welcome the Chancellor’s Budget and what it means for the UK’s entrepreneurs.

“We live in very uncertain times and while entrepreneurs thrive on change and opportunity, there is an essential need for real investment in priority areas. The focus on digital skills and long-distance learning is really welcome as it will help entrepreneurs grow through connectivity.”

“Working with those entrepreneurs, as we do every day, right across the UK, we would caution against thinking the job is done. This must be just a first step.”

Jonathan Lowe, head of technology in the North West at RSM

“Technology was a running theme throughout the Autumn Budget highlighting the strength and opportunity in the sector. In the chancellor’s own words, ‘embracing the future’ through increased investment in emerging technologies such as 5G connectivity, artificial intelligence and driverless cars, will drive the economy.

“While there was a welcome increase in the rate of R&D tax relief to 12 per cent under the scheme available for larger companies there was no sign of anything specific for SMEs – which is a blow for start-up tech businesses that are a significant engine of growth for our economy.”

Rebecca Durrant, tax partner at Crowe Clark Whitehill (Manchester)

“The £243 million for Greater Manchester to improve intra city transport, connectivity, and to reduce congestion, along with the £300 million for the Northern Powerhouse for HS2, can only be good news.

“We should further benefit from the £1.7 billion Transforming Cities fund, together with £30 million to fund new solutions to improve mobile and digital connectivity on TransPennine rail routes, when we are trying to avoid the roads.”

Steve Eccleston, managing partner at Kuits

“The budget brings good news for businesses with the prospect of the retrospective legislation to prevent what is known as the ‘staircase’ tax. The Supreme Court had previously made a decision in favour of the valuation agency (VOA) which meant that they could claim business rates separately for each individual floor a business may occupy in a building.

“Firstly, this meant the tenants potentially having to pay considerably more by way of business rates and, secondly, losing the ability to claim the appropriate rate relief across the multiple ‘premises’. This is important, money-saving news for the many businesses, particular SMEs, which occupy buildings on separate floors where there are other occupiers with a communal staircase.”

Murray Patt, founder of Alexander Knight & Co

“The uplift in EIS relief to £2m could be interesting to our entrepreneurial clients, although the application of more anti-avoidance measures may counter the benefit. The raising of the basic and higher rate income tax threshold is positive for the economy and means more money can be spent on goods and services providing a tangible boost but it’s not major news. Most SMEs will welcome a crackdown on the levels of taxation paid by multinational competitors operating outside UK jurisdictions.

“On the negative side, we want to see a reduction of red-tape for small businesses and the fact that the Chancellor is considering reducing the threshold at which small firms need to be registered for VAT is concerning. Any adverse changes to the VAT regime must be carefully considered.”

Mike Blackburn, chairman of the Greater Manchester Local Enterprise Partnership

“Achieving the ambitions of the Northern Powerhouse depends largely upon securing enhanced transport links to and within Greater Manchester and the additional funding of £243m from the Transforming Cities Fund will support us in moving another step closer to that goal.

“By identifying measures to tackle local transport issues, including reducing congestion and supporting the expansion of cycling, we can make a real difference to the lives of people in Greater Manchester.”

Lynn Sedgwick, managing director of Clayton Recruitment

“We welcome the news that the Northern Powerhouse appears to finally be back on the political agenda with the Chancellor committing £1.7 billion to the Transforming Cities fund which we are hopeful will address what we have called for for some time – the connection of prosperous city centres to the suburbs that will provide workers better transport options.

We are also pleased to see that, despite disappointing productivity growth, the Government has announced initiatives which support research and development and emerging technology that will allow firms to innovate over the coming years.“

Dr Andrew Rose, life science and health sector manager at the Liverpool LEP

“The Liverpool City Region Local Enterprise Partnership welcomes the announcement in today’s Budget to expand the use of AI, especially the differences it will make to healthcare. It’s no secret that digital health is high on the tech agenda at the moment, and AI is already playing a vital part in that.

“The Liverpool City Region, for example, is home to Alder Hey Children’s NHS Foundation Trust, which is taking AI and cognitive computing healthcare into the global arena through its work with IBM, STFC Hartree Centre and other like-minded programmes such as the Health Innovation Exchange.

“The commitment to R&D from today’s announcement will also contribute to this transformational work taking place right here in the Liverpool City Region and put us on the map when it comes to healthcare innovation on an international scale.”

Sir Howard Bernstein, strategic advisor to Deloitte

“It has been a quiet few months for devolution, with a growing concern that it could have fallen off the political radar.

“However, the flurry of deals and announcements in today’s Budget was a welcome signal that devolution and local growth remain high on the government’s agenda and important elements of plans to rebalance the economy and drive growth.”

Christine Hewson, head of tax in the North for KPMG

“Business was looking for a Budget with few surprises – and, thankfully, that’s what they got.

“The Chancellor avoided introducing any further complexity into the tax system, and it is encouraging to see him use tax policy as a lever for growth and investment as we approach Brexit.

“There were measures to improve competitiveness and innovation, and a commitment to continue with a competitive corporate tax environment – things business crave – but the sharp reduction in economic growth forecasts threatens to overshadow.”

Colin Tice, tax partner at Cassons

“To encourage first time buyers, stamp duty (SDLT) is abolished from today on the purchase by a first time buyer of a house or other dwelling up to £300,000, and on the first £300,000 of a purchase of up to £500,000.

“But all joint owners must qualify for the relief. This can cause a problem. If for example a parent helps a child onto the housing ladder, perhaps guaranteeing a mortgage, the parent will often be included on the deeds. That will not only exclude the purchase from the relief, but will incur the extra 3% ‘second home’ stamp duty charge. A purchase for £300,000 would then incur SDLT of £14,000.”

Katie Gallagher, managing director of Manchester Digital

“It is most welcome that the government is investing in the next generation of tech talent, pledging £600 to our schools for every new student who takes up A-level maths, and particularly in tripling the number of computer science teachers to 12,000. It’s not enough to have a computing curriculum, it needs to have talented experts who can teach it in an engaging and useful way that reflects the needs of industry.

“I will be interested to see how the £21 million in Tech City UK (now Tech Nation) is apportioned and spent, if it is about connecting clusters then they need to do a much better job of engaging with existing clusters and organisations and the regions must hold Tech City UK to account and ensure that London does not dominate its budget.”

Howard Simms, chief investment officer at Apadmi

“As ever, the Chancellor’s Budget divides the nation but it feels like there is some good news in that mobile technology will be boosted by an allocation of £500m for investment in artificial intelligence (AI) and 5G connectivity.

“AI’s potential to change things is huge, and this investment may speed this change further.

“And whilst 5G connectivity is still in its planning stages as telecoms operators and network providers battle it out over standards and protocol, it’s not far away. Let’s hope yesterday’s announcement will bring it closer, because the resulting technology will deliver the connections and the high bandwidth that can link many more millions of devices together; the much-heralded Internet of Things. It’s a really exciting thought.”

Gary Hughes, specialist tax manager at Hallidays

“The chancellor’s Autumn budget was used as a tool to try and get more first-time buyers into the housing market with a £300,000 stamp duty land tax (SDLT) exemption. Whilst this looks appealing at first glance, it could actually have the effect of increasing property prices, which surely couldn’t have been the aim of the chancellor?

“A spokesperson for the Office for Budget Responsibility said ‘We estimate that the Stamp Duty relief will increase house prices by 0.3 per cent’. Sceptics could therefore say the main financial gain will be made by those who already own properties, rather than the first-time buyers themselves who the policy was introduced to help.

“The Labour government of 2008 temporarily suspended SDLT for a year for properties costing less than £175,000, but this resulted in an increase of 0.7 per cent in property prices.

“The new rules will likely create a greater demand for first-time buyer properties, but as housing stock is limited, this will inevitably lead to prices being pushed up. The Government’s plans to build 300,000 new homes a year can help to alleviate the supply and demand concerns, but overall how much this new policy will help its intended market is debatable.

“Will the likely price rises outweigh the SDLT savings? This remains to be seen.”

What were your thoughts on this year’s Autumn Budget announcement? How do you foresee the changes affecting you or your business? Let us know in the comments.