Business groups in the East welcome Budget tax breaks and investment
- Credit: Lucy Taylor
Business groups in Suffolk and Essex yesterday welcomed the latest moves by George Osborne to cut the tax burden on enterprise.
Although the Chancellor announced a further clampdown on tax avoidance, this will largely affect multinationals – preventing them shifting UK profits overseas – and leave most firms to benefit from more positive measures.
These include an increase in business rates relief for smaller firms, a further cut in Corporation Tax, a reduction in Capital Gains Tax and the abolition of Class 2 National Insurance contributions for the self-employed.
There was also a welcome for confirmation of Government support for several transport infrastructure projects, including river crossings in Ipswich and Lowestoft.
“It was vital that business and economic development was at the heart of today’s Budget and we can be encouraged that George Osborne has delivered a package that will support business,” said John Dugmore, chief executive of Suffolk Chamber of Commerce.
“Local announcements including support for the crossings at Ipswich Wet Dock and Lake Lothing in Lowestoft, which Suffolk Chamber has been actively promoting, will make a real difference and we look forward to further details of the funding.”
David Burch, director of policy at Essex Chambers of Commerce, said: “The reduction in Corporation Tax and the abolition of Class 2 national insurance are obviously welcome as are the changes being proposed in the limits for small business rates relief. All of these should be of real benefit to businesses in Essex as is the continued freeze on fuel duty.”
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Carolyn Fairbairn, director-general at the CBI, said: “The Chancellor has listened to our concerns about the mounting burden on firms and chosen to back business to grow the economy out of the deficit. Businesses will welcome the Chancellor’s permanent reforms to business rates, taking more small firms out of the regime and changing the uprating mechanism from RPI to CPI, which the CBI has long been calling for.
“The reduction in the headline Corporation Tax rate sends out a strong signal that the UK is open for global business investment, and reforms to Interest Deductibility are rightly in line with international consensus.”
Mike Cherry, policy director at the Federation of Small Businesses, said: “In a Budget constrained by both the need to reduce the deficit and the economic outlook, the Chancellor has listened to our calls for the tax system to be made simpler for small businesses and the self-employed and taken important action on business rates.
“In particular, FSB members have campaigned hard to make Small Business Rates Relief permanent, and expand it – and the Chancellor has heeded our calls, taking many small firms out of the system altogether.”
Institute of Directors director general Simon Walker added: “There was plenty in the Budget for small and medium-sized businesses. They will welcome measures including more relief on business rates and cuts to Capital Gains Tax and a further Corporation Tax reduction coming in a few years.”