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East Midlands Chamber News

Budget 2013: Response From Members

Licensed by HM Treasury (CC BY-NC-ND 2.0)DNCC gave a mixed reaction to the 2013 Budget yesterday, with Chief Executive George Cowcher welcoming some of the more business-friendly measures, but stressing the point that more still needs to be done to boost growth.

The Chamber is currently collecting members' reactions to the Budget via a short online survey, into which you can input your views by clicking here.

Post-Budget Seminar

Newton Accountants Ltd is hosting a post-Budget seminar, with emphasis on the tax breaks for technology, on Tuesday 26 March 2013 at the Park Inn, Mansfield Road, Nottingham, NG5, 2BT, between 8am and 9.30am. The speakers will be:

  • Chris Newton - budget update with emphasis on the tax breaks for technology
  • Steve Jones of Adamson Jones, Patent Attorneys - explaining the practical issues of obtaining patents
  • D2N2 LEP Chief Executive David Ralph - an update on the LEP's growth plan

We are also hoping for a speaker from the Chamber of Commerce or D2N2 LEP on business assistance in the East Midlands.

If you would like attend, email crsnwa.ouhi@etxc.k or call 0115 9609955.

Here's what some of DNCC's members and partners have been saying about the Budget:

Mike Tuhme, regional tax partner at RSM Tenon, said: "George Osborne’s pledge to "take tax off jobs" by reducing the amount of National Insurance contributions paid by businesses should benefit thousands of businesses in the UK. In a new scheme called the Employment Allowance, the first £2,000 of employers National Insurance costs will be exempt from charge.

"Although this is available to all businesses, 98% of the benefit is likely to be felt by small and medium sized businesses. Those who want to set up their own business and are looking to take on a first employee should find the savings available here a huge boost.

"A company will be able to employ one person on £22,000, or four people on the minimum wage, without paying any National Insurance contributions at all. The proposed reduction in corporation tax to 20% by 2015 will be a welcome change to larger businesses and may attract more companies to the UK from overseas in a bit to stimulate the UK economy."

Neil Milington, from the First Enterprise Business Agency said: “We welcome news from the budget announcement to help small business owners or those considering starting up their own business.

“The Chancellor has said the first £2,000 will be taken off of all companies' National Insurance bill, 98 per cent of the benefit of which will aid small and medium-sized businesses. He said a company will be able to employ one person on £22,000, or four people on the minimum wage, without paying any National Insurance contribution.

“We support measures that will help to boost small business here in the East Midlands as this is the lifeblood for economic growth in the region.”

Dr Adam Marshall, Director of Policy and External Affairs at the British Chambers of Commerce, said: "The Chancellor of the Exchequer faced a difficult task in today’s Budget, given the need to maintain fiscal discipline while attempting to shift resources toward growth.

"There are a number of positive measures that businesses will cheer. For smaller companies in particular, the new (and automatic) £2,000 employer NICs reduction, the cancellation of the fuel duty rise, and the BCC-proposed Growth Vouchers scheme will stand out. For all companies, swifter reductions in Corporation Tax (which will fall to 20% in 2015) feature strongly, as do improved incentives for investment and R&D.

"The Chancellor heeded our call to re-prioritise expenditure, up to a point. He has moved £15bn from current to capital spending, but this only kicks in during 2015/16 – the start of the next Parliament. There was no immediate shift toward road maintenance or house-building, both of which could have boosted construction and business confidence quickly. There was also no large-scale action to boost business access to finance, although we are expecting further details on some existing initiatives soon. Hence our calls for greater urgency, scale, and delivery.

"Unfortunately, there was also no further action on business rates – a key priority for the Chamber Network. Only speculative construction and companies in properties with very low rateable values will see relief, in line with what was announced last November. However, the Treasury tells me that business rates will be reviewed fully ahead of this year’s Autumn Statement. So some possibility of change remains on the horizon.

"The change to the remit of the Bank of England’s Monetary Policy Committee will be studied extensively, by ourselves and others, in the days ahead. While the MPC’s main job will still be to target inflation, it will get addition flexibilities to try to boost growth."

Nottingham Post Political Editor Alex Britton ran a live Tweet blog as the Budget unfolded yesterday, which can be viewed below: