More business reaction to the Budget

Business figures from across the West Midlands have been reacting to Chancellor Rishi Sunak 's Spring Budget.

Here 's a round-up of the reaction:

Maria Machancoses, director of Midlands Connect:

“It's fantastic news that East Midlands Airport has been confirmed as the location of one of eight UK Freeports, as well as the Humber Freeport, which contains Immingham Port in Lincolnshire.

“We will now work in earnest with local authorities to make sure these site are well-connected, and that businesses have the road and rail infrastructure needed to trade with local, national and international partners. ”

Joanna Deffley, West Midlands regional head at law firm Shakespeare Martineau:

“The Budget focused on a package of continued support, with phasing out later in the year.

“Businesses and individuals in the West Midlands may well be relieved to hear that there will be continued support, but if the Chancellor does not intend to put up taxes in the near future, he 's banking on the economy bouncing back rapidly, and businesses growing and investing.

“That will all depend on the continued success of the vaccine roll out, and the bounce back being as successful and rapid as the forecasts predict. ”

Nigel Bostock, chief executive, Crowe:

“The Budget 2021 was always going to be a balancing act for Rishi Sunak. Although post-Brexit, the UK continues to be in the 'eye of the storm ' of the pandemic, albeit with positive indications ahead with the progressive vaccination roll-out programme and the gradual step 1 to 4 plan to ease restrictions over coming months.

“Now does not appear the time to raise taxes while pressure continues to be on the government to provide wider support to people, business, the economy and progress their 'build back better ' Coronavirus Recovery Campaign. The Budget has effectively delivered on this agenda.

“While the Budget delivered what we expected, what remains clear is that at some stage there will be a need to pay for the significant government support provided (estimated at £352bn worth of Covid-related support out of a sum of £407bn total fiscal support) and the consequential government borrowing obtained during the pandemic.

“Now is not the time, but the balancing act will continue in the future as the need for tax rises will increase against a desire to ensure that, as this happens, such action does not unduly create a loss of public and consumer confidence to damage the economic growth needed for the 'build back better ' agenda. ”

Monica Macheng, Birmingham-based corporate partner for law firm Bevan Brittan:

“Brexit and Covid-19 have brought extraordinary pressures to bear on businesses in the West Midlands.

“This budget needed to deliver clear and comprehensive recovery policies to encourage investment.

“The announcement of the 'super deduction ' in tax to encourage business investment is welcome.

“However, manufacturing businesses in the West Midlands will be disappointed there were no announcements to help with the red tape they are facing for exports post-Brexit.

“It was also disappointing there were no new incentives to encourage lowering the carbon footprint of manufacturing supply chains, which are going to be a key part of reaching the government 's ambitions to lower emissions to net zero by 2050. ”

Jessica Bowles, director of strategy, Bruntwood:

“The Chancellor said he wanted to level with the country about the state of our public finances, but we 're owed the same clarity on levelling up too.

“While there were plenty of encouraging announcements today, the government continues to send mixed messages. Plans to slash budgets for Transport for the North alongside the interminable delay to the devolution whitepaper sit at odds with its core pillar of policy.

“Levelling up will only work if both money and power moves from Whitehall and into the regions to enable joined-up decision making at a local level.

“Plans to move more civil servants and even entire government departments out of London are nothing new and the pace to date has been glacial. Today 's announcements finally put some meat on the bones.

“But while welcome, they won 't move the needle on reducing regional inequalities, the roots of which lie much deeper. It will take sustained investment and new approaches to the delivery of health services and education, alongside relocations. ”

Trusha Kachhela, Midlands Tax Leader PwC:

“The Chancellor has swept aside any lingering notion of the UK becoming a post-Brexit Singapore. After years of a declining headline corporation tax rate, his hand has clearly been forced by the pandemic and a desire to start repairing the public finances. But in increasing the rate in one bang in 2023 rather than a gradual rise, he will rip off the plaster more quickly and painfully than might have been expected.

“While the UK will still be left with a headline rate around the G20 average, this doesn 't necessarily paint the full picture. Over recent years, the effective tax rate has increased through restrictions on reliefs and allowances. However, the Chancellor has taken steps to address that trend through the super deduction for capital investment.

“In setting out his stall now rather than waiting until an inevitable autumn budget, the Chancellor has sent a clear signal that he favours tax rises over increased borrowing. ”

Ben Leather, managing director of Spitfire Homes:

“We welcome the Chancellor 's announcement to extend the stamp duty holiday in phases to the end of September. The move will deliver an important confidence boost to the market, providing further stability over the coming months.

“Following its introduction in July 2020, the incentive has acted as a catalyst for the housing market, resulting in a nationwide surge of activity. Today 's announcement will add further comfort for those in the process of buying a home, helping to avoid a hard deadline of the end of March, which would have resulted in buyers having to source up to an additional £15,000 to cover the cost of stamp duty or put their purchase at risk.

“Interest in our homes has remained strong throughout the pandemic. We have seen significant interest from buyers who require premium homes in desirable locations, with prospective buyers seeking an escape to a more rural location or looking for an out-of-city commute to make a permanent lifestyle change, accelerated by the changes in working situation and overall consumer outlook as a result of the pandemic. “

“The introduction of the government mortgage guarantee scheme is a further measure that will make owning a home more achievable.

“As a Midlands-based business, the mortgage guarantee scheme is especially welcomed, as it will help address the affordability gap left by the revised to Help to Buy scheme regional caps which come into effect next month.

“With a West Midlands Help to Buy regional cap of £255,600 and East Midlands cap of £261,900, wider availability of 95% mortgage products available on properties up to £600,000, as a result of the new mortgage guarantee scheme, will go some way to supporting first time buyers in securing a home. ”

Paul Townson, tax partner at BDO in the Midlands:

“While everyone has been impacted in the past 12 months, there are some places, sectors and people who have been disproportionately affected. Today 's Budget needed to be about levelling up our recovery with targeted support, while balancing the books, and some steps have been taken to do this.

“We 've seen targeted support for sectors, such as hospitality, retail and personal care. To create more job support for young people, the government doubled the apprentice incentive payments for businesses to £3,000 for all new hires, of any age, which is a real positive.

“This may provide companies the opportunity to rethink their approach to future talent. Businesses in our region will also benefit from the East Midlands Airport freeport.

“The Chancellor also recognised we will need an investment-led recovery and the super-deduction of 130 per cent on capital invested. This may offset the future increases of corporation tax for profitable and large companies.

“It should also provide an incentive to entrepreneurial businesses to invest in their own future growth, helping to drive up productivity and put the region firmly on the road to recovery post-Covid. History shows us that mid-sized, entrepreneurial businesses will be the key to powering up the region's economic and social recovery that will level up the UK. ”

Andrew Goodacre, CEO, British Independent Retailers Association (Bira):

“We broadly welcome the announcements for smaller retailers in the Budget; restart grants, recovery loans, furlough scheme and reduced business rates.

“A reduction in business rates for 2021/22 is welcome but we strongly believe that the Chancellor has missed an opportunity to go one step further by not giving a full year of relief to non-essential retailers. This has been done in Scotland, and such a decision in England would only have cost approx. £1bn to give genuine reassurance to thousands of retailers looking to re-build their business.

“Also we need an extension of the rent moratorium so that businesses can look forward to making the most of the support being made available by the Government."

“These measures are certainly something that indie retailers can work with, but as always, it will be a matter of there being 'devil in the detail '. ”

Mike Brown, Partner, Head of Tax, West Midlands at Azets:

“The extension of the 5 per cent VAT relief for hospitality businesses and an interim rate of 12.5 per cent is only of any value if the hospitality sector can reopen.

“The economy needs to reopen first, and hospitality businesses allowed to trade so the sector can benefit - and we seem to be a long way from that point.

“Clarity is also needed on rules relating to advance bookings. ”

Pictured: Chancellor Rishi Sunak

Image credit: Cubankite/Shutterstock.com

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