The Chancellor's Budget has given businesses vital "breathing space" according to a leading business figure in the county.

Rishi Sunak unveiled his heavily leaked Budget in the Commons this afternoon with most businesses taking comfort from a range of measures designed to allow them to survive the lockdowns which have proven so financially devastating over the last 12 months.

Key announcements were the extension of the furlough scheme until December, an extension to the business rates holiday, and further grants for hospitality and non-essential stores forced to close.

Jo James, chief executive of the Kent Invicta Chamber of Commerce said: "Without having a chance to see the detail in the red book, on the face of it the Budget appears to be generous in some areas and fair in others.

"Billions has been spent supporting the economy since March 20 and there was concern that the Chancellor will look at rising taxes to pay for it now. Yes, taxes will be increased but not immediately, this Budget has certainly given business some breathing space.

"We expected to hear a rise in corporation tax and it was certainly pleasing to see how it has been set out, for many of our small businesses who have profit below £50,000 there will be no change and then tapered increase. It is only larger businesses with profits in excess of £250,000 that will have to pay the new 25% rate and that won’t come into effect until 2023, when the economy should be well on the road to recovery and growth.

"The furlough scheme has been a lifeline for so many businesses across the county and so many will now be breathing a huge sigh of relieve, particularly those businesses that are still closed or facing reduced demand.

"Continuing the scheme until the end of September gives business the confidence and clarity that they need as many start on the road to recovery and growth.

"Access to finance is going to be paramount as business start to move forward and with the Bounce Back and Cibls loans coming to an end, the announcement of the recovery loan will certainly be well received.

"Additional grants for the hospitality, retail and leisure sectors will again be welcomed, although the amounts are just a drop in the ocean compared to the actual losses so many in these sectors are facing but they will be well received.

"It was good to hear that the self employed scheme will be extended to those who set up last year and we not eligible but sadly, there are still many who will fall between the gaps and once again miss out.

"It was also positive to hear there will be funding for training and the move to digital, these will be vital for the recovery.

"These measures will go a long way to helping our economy recover more quickly."

Alison Parmar, local development manager for the Federation of Small Businesses (FSB) felt there were still some issues which needed addressing.

She said: "This Budget will help many small firms with their final push through to September, but there is little here to aid job creation or help people return to work.

"Ensuring the newly self-employed can now access support marks a big step forward – we’re pleased to see our campaign has been heard – but directors, who appear to have been left out yet again, will be incredibly disappointed.

“Thousands of small businesses are on the brink of collapse and thousands more are suffering from low confidence as cash reserves dwindle. They will welcome both the extension of flagship support schemes that have kept them going over the hardest year they have ever faced, as well as confirmation of new support measures around taxation, employment and cash grants.

“The continuation of business rates and VAT discounts is critical, and it’s important that those in supply chains benefit from them, not just those that neatly fit the definitions of frontline retail, leisure and hospitality.

"The new super deduction option sounds very promising, and we look forward to further detail on the investments it will cover – it should be made accessible to the smallest firms."

Sue Rathmell, indirect tax partner at accountants and business advisor MHA MacIntyre Hudson, which has offices in Canterbury and Maidstone said the hospitality sector in particular should be relieved.

She said: "The Chancellor seems to have listened to its pre-Budget requests. In particular, the extension of the 5% VAT rate for the UK hospitality sector for an additional six months up to the end of September 2021 is good news for businesses in the sector as it will cover the much important summer season. It was even more reassuring to see that in addition from October 1 2021 to March 31 2022, the VAT rate will increase to 12.5% before it returns to 20% with effect from 1 April 2022.

“With the lockdown easing over the next three months, tourism and hospitality businesses in Kent will be hoping that this VAT reduction will encourage the UK public to stay in the UK this year and make the most of UK resorts and destinations whilst supporting UK businesses. They desperately need a good summer 2021 season to help save jobs and shore up finances to be able to survive the current crisis.

“The extension of the furlough scheme to the end of September is also a much needed move. Although we wait for further details of new schemes such as the cash restart grants of up to £6,000 and the £18,000 for hospitality and leisure businesses they will be welcomed by the sector."

"Finally, there will be an extension of the business rates holiday for the retail, hospitality and leisure sectors until the end of June 2021 and reductions of up to two thirds for the rest of the year.

“The regrowth of the hospitality sector will not only be dependent on these measures but also on the successful reinvigoration of the UK’s high streets and city centres – encouraging people back into towns and cities will support pubs, restaurants, hotels, cinemas and theatres. The Chancellor has put together a package of measures that we hope will support the sector to get up and running again as Covid-19 restrictions are lifted.”

Meanwhile, Rebecca Swain, head of conveyancing for Tunbridge Wells law firm Thomson Snell & Passmore discussed the extension to the stamp duty holiday.

She said: “It means there will be no stamp duty due on the first £500,000 of any property transaction, giving a potential saving of £15,000 for an additional three months.

“In addition, to smooth the cliff edge of the June 30 deadline, there will be a further three month holiday of 0% stamp duty on the first £250,000 of property transactions from July 1 until September 30.

“Due to the tax saving benefits, the market has seen a large increase in the number of transactions.

“This, combined with restrictions in working practices due to the pandemic has meant there are backlogs in completing transactions. The Chancellor has looked to resolve this by extending the holiday.

“It is fair to say the stamp duty holiday has been very important to the market. Transactions were fairly buoyant before the holiday was announced last July, but since then there has been a marked increase, with activity far in excess of previous years."

The Budget felt a bit 'buy now, pay 2023'

Nick Paterno, managing partner at McBrides Accountants in Foots Cray concluded: "The Budget felt a bit 'buy now, pay 2023' and we await March 23, dubbed by some as 'Tax Day' to see which tax measures will go for consultation this year: a sure sign of those that face a rise at a later date.

"As the Chancellor warned - interest rates won't stay low forever, and he's got a keen eye on the public finances and ensuring he claws back the unprecedented spend."

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