More reaction to Chancellor 's Autumn Budget

Chamber members have been reacting to the Autumn Budget which was set out by Chancellor Rishi Sunak yesterday.

Key headlines from the Budget included respite on business rates and support for the Levelling Up agenda.

Here 's what some Greater Birmingham businesses had to say:

Jonathan Webber (pictured), head of Business Rates at Colliers

The Government published its interim report of the fundamental review of the business rates system last March, when it listed the responses of the industry to the consultation from across all sectors- both private and public.

The industry was unanimous about what needed to be done - but disappointingly only two of the points suggested have been addressed today.

To not tackle the business rates burden, the multiplier, the relief system, overhaul the CCA appeals system or even to consider other taxes such as an on-line sales tax or delivery tax to help reduce the burden of business rates- feels like a kick in the teeth.

Everything that I and my fellow professionals, businesses and trade groups have been saying for years appeared in the Government 's interim report in March. Yet here we are yet again seeing no overall concluded reform and no apology for the lack of action.

I wonder why the Government went through the process of consultation in the first place- if it is to ignore all advice yet again.

The Chancellor does seem hostage to the Treasury. The problem with his response however is that by failing to properly reform business rates, he 'll have cooked the goose that lays the golden eggs, and more business will struggle or go under.

Local finances will be even more impacted particularly in the poorest parts of the country.

It 's disappointing, missed opportunity.

Birmingham Airport

Birmingham Airport welcomes the Chancellor 's announcement to scrap the double charge of APD on domestic flights, removing this longstanding anomaly to create a lower band.

Domestic connectivity facilitated by regional airports can have a range of economic and social benefits, which are more important now than ever as the country recovers from the impact of the pandemic.

This, together with the AGOSS extension, will enable airports to support the UK 's recovery and level up economic activity across the union.

Andrew Goodacre, CEO of the British Independent Retail Association (Bira)

Whilst we would have liked to have seen a more fundamental review of business rates, we are pleased to see some respite for the smaller, independent retailers.

The retail discount for business rates was a positive move when first introduced in 2019 and it is right that it is now re-introduced. We also think that the incentive to encourage investment in equipment tor reduce the carbon footprint of shops is a good idea.

Prior to the Budget Bira called for support for business rates, incentives for zero carbon initiatives and investment in the transport infrastructure. It looks like the team at the Treasury have been listening and we will continue to push for the more fundamental reform of business rates on behalf of our members.

Nick Latimer, tax partner at national audit, tax, advisory and risk firm Crowe

For my private clients and family business owners, it was good to see no significant further tax rises beyond the 1.25 per cent increase in the rates of national insurance and dividend tax that were previously announced to fund social care. Nevertheless, the tax burden as a result of this and the previously announced increase in corporation tax to 25 per cent from April 2023 will be historically high.

The freezing of personal tax and other thresholds have a revenue raising effect given inflation in the economy, and further rises might have had the impact of further slowing our recovery from Covid-19, the best way out of our debt problems as acknowledged by the chancellor in his speech.

For businesses, the extension of the £1 million annual investment allowance for business investment until March 2023 will also be helpful, though some care will be needed to decide whether this, or the previously announced 130 per cent “super deduction ” for corporates, is more beneficial.

I am pleased the Chancellor did not raise the top rate of Capital Gains Tax from 20 per cent, which have been the subject of much speculation. There is a need to look at whether capital gains tax rates incentivise the taxpayer appropriately, but maintaining a low rate for entrepreneurial activity and a lifetime of work encourages new businesses to set up and thrive. The differential rate of capital gains tax for residential property (up to 28 per cent) has not significantly, in my experience, stopped investors from backing the housing market to continue to perform, particularly with further announced government backed support and investment in affordable housing and earmarked brown-field land for new homes.

The introduction of draught relief for beer and cider, reducing duty in pubs from 2023, will also be appreciated in the west country where I am from, as well as elsewhere, though perhaps not the duty increases for higher strength alcohol.

There will be tax avoidance measures to look at in the detail, and where there are 'simplification ' measures, these often lead to an increased tax take. As ever, the devil will be in the detail of the budget documents.

Chris Romans, head of Tax at EY in the Midlands

It 's good to see some positive announcements in the Budget that supports the ongoing Levelling Up agenda in the Midlands.

This included earlier this week when it was announced that the West Midlands had secured £1bn funding to expand the region 's tram, train, bus and cycle networks and drive a green transport revolution through the City Region Sustainable Transport Settlement (CRSTS) fund. This should create new jobs and opportunities for local people and adds to a commitment to fight against climate change.

The funding is part of Rishi Sunak 's £6.9bn aimed at levelling up, making the region 's outside of London more accessible. Add to this the pre-budget announcement that he is making £1.8bn available for the regeneration of brownfield sites and it 's likely that we 'll see major construction projects continuing to shape the Midlands economy in the medium to long term, especially as we countdown to next year 's Commonwealth Games and projects involved in the delivery of HS2 gain momentum.

Ross Northall, tax partner at BDO LLP in the Midlands

The Chancellor shared OBR expectations that the UK 's economy will recover more quickly, with a forecast for the economy to return to its pre-Covid level at the turn of the year - earlier than they thought in the spring statement. As a result, this Budget included several spending announcements.

However, there are many businesses in sectors and regions disproportionately impacted in the past 20 months that are not expecting their own recovery until further ahead of that date. Our most recent Rethinking the Economy survey found that 35% of companies in the region predict it will take up to another 12 months to return to pre-Covid-19 revenues, so targeted support is still needed to deliver a sustainable and more “levelled-up ” recovery.

There were some positive announcements around skills and talent with investment, which will be welcome news for many businesses struggling with skills shortages and finding that this is the greatest barrier to growth. But, accessibility will be key to the success of the “skills revolution ”. This includes ensuring 16-19-year-olds from all backgrounds and regions are able to access the opportunities and that businesses of all sizes and from all regions are then able to easily access this talent pool.

Businesses consistently tell us their biggest ask of the Chancellor is a simpler tax system and for some industries that was delivered today with the alcohol duty system set to be simplified and altered, new small producer relief for craft breweries, and draft relief to support pubs. This is a positive result for a sector which has faced ongoing challenges over the past 20 months.

Overall, the statement included high levels of spending and investment, alongside lots of cuts and incentives on taxes and duties. But before everyone celebrates with a sparkling wine - which we 're set to pay less duty on - we 'll need to look at the detail to understand how everything is being paid for.

Stella Amiss, head of tax for regions at PwC

The good news is that the Chancellor reiterated his ongoing commitment to levelling up across the whole of the UK.

The deployment of the first £1.7bn of the levelling up fund to communities far and wide will be welcomed by those local initiatives, the focus on local infrastructure is always well received, and announcing the first Freeport sites in Humber, Teeside and Thames is a positive first step to delivering real change in those areas.

However this may be regarded as a missed opportunity for a real renewed focus on developing skills and opportunities in those areas that feel left behind.

A wider concerted policy to incentivise investment, skills and employment in those areas could have worked well alongside the R&D credit reform and the ambitions for the UK to become a science superpower.