Jeremy Hunt’s ‘back-to-work’ Spring Budget 2023: Business community reacts

This afternoon (Wednesday March 15) saw Chancellor of the Exchequer Jeremy Hunt address both parliament and the nation with a revised spring budget that has been dubbed the ‘back-to-work budget’. The Chancellor has made many promises with this latest address, but how have UK businesses been responding? Read on to find out more…

ACCA’s head of technical advisory, Glenn Collins:

“Today’s announcements broadly focused on the right issues for the longer term, such as encouraging investment in net zero and expanding our labour market. However, given the months of turmoil, many firms are still likely to feel hesitant about the road ahead.

“While there was some welcome news on investment incentives, there was little to cheer on tax, but we do have a commitment to a review of our overly-complex tax system.

“While moves towards greater stability are welcome, many of these changes won’t deliver results in the short term, so it was disappointing to see the planned increase in corporation tax proceed.”

Royal Park Partners’ founder and managing partner, Aman Behzad:

“Sustainable and long-term economic growth will only work if opportunities to accelerate research and development are shared between regions across the UK.

“In a positive move that recognises the strength of innovation across the country and encourages further progress, the Chancellor’s plans for 12 new investment zones to “supercharge” growth in hi-tech industries is one of the punchier developments to come from today’s announcement.

“Although there is a long way to go, this is one step towards making the UK a tech superpower.”

Ledgy’s co-founder and CEO, Yoko Spirig:

“Looking over from Switzerland, the UK has always stood out as a positive example of a progressive tech hub that champions innovation and balanced risk-taking. This is one of the key drivers for foreign direct investment and why European firms like Ledgy choose to set up offices and operations in the UK.

“For the UK to maintain this position and continue to attract tech firms, it needs to continue creating and fostering the optimal environment for companies to come and operate here. Today’s announcement of an enhanced R&D tax credit scheme for SMEs is positive for the tech ecosystem.

“This reversal, coupled with the UK government’s intervention to support tech businesses through the weekend’s Silicon Valley Bank crisis, shows the UK is still an attractive place for tech firms and will help ensure it stays out in front as a positive example for other European markets.”

Marble Arch London BID’s chief executive. Kay Buxton:

“Shopping accounts for 46 per cent of all tourist spending, with 54 per cent being spent on hotels, eating out, and visitor attractions so it is frustrating that the Chancellor has again ignored widespread calls to reintroduce tax-free shopping for international visitors.

“Independent research suggests that reintroducing tax-free shopping would have led to an extra £2.1bn being spent on shopping by overseas visitors, as well as £1bn on hotels, restaurants, and visitor attractions.

“The removal of tax-free shopping has damaged the international appeal of the UK for visitors, so this is another missed opportunity by the Chancellor, which would have provided a much-welcomed boost for the UK visitor economy.”

Rose Capital Partners’ founder, Richard Campo:

“I’m disappointed to say that there was nothing in the Budget to alleviate the pressures on the UK housing market but with 20 housing ministers since 2010 and a lack of continuity and foresight over this period, the consequences of inaction are now really biting, and will only get worse until this issue is addressed.

“There are two simple (but hard) solutions that can solve this: Firstly, we need to build more! According to the think tank, Centre for Cities, at the current rate, it will take us 50 years to catch up with demand, even if we started building 300,000 homes a year, which we are not currently doing.

“Secondly, we need to reverse the tax treatment on Buy To Let properties that was introduced in 2017. Rents are soaring due to landlords exiting the market, and this will only get worse before it gets better.”

Charles & Dean’s director and co-founder, Tom Perkins:

“While uptake of the most recent business investment incentive, the super-deduction, hasn’t been as significant as hoped, such schemes are crucial to enable businesses to invest and strive for long-term growth. Chronic underinvestment in the private sector in the last 20-30 years has had a huge impact on wider economic growth and productivity.

“With many businesses still balancing the Covid bounceback and recovery with the increasing cost of borrowing, the importance of investment incentivisation cannot be overstated. The Spring Budget presented an ideal opportunity for these issues to be addressed and to provide a springboard for growth.

“Businesses desperately need confidence and reassurance that the Government will do all it can to help. While disappointing that the replacement to the super-deduction has been cut to a 100 per cent deduction from the previous 130 per cent, it’s promising to see more small businesses will be able to benefit from the Annual Investment Allowance.

“Now is the time for the Government to learn from its mistakes, create a landscape that is conducive to investment, and ensure that new incentives are communicated clearly with business owners to enable them to build long-term growth.”

By Matthew Neville – Senior Correspondent, Bdaily

• Add me on LinkedIn and Twitter to keep up to date
• And follow Bdaily on Facebook, Twitter and LinkedIn
• Submit press releases to editor@bdaily.co.uk for consideration.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →