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Business

Kent bosses call for business rate cut in 2014 Autumn Statement by Chancellor George Osborne

By: Chris Price

Published: 00:01, 01 December 2014

Bosses have put a reduction in business rates and greater stability on their wishlist for the Chancellor’s Autumn Statement.

Weak wage growth and the struggles in the Eurozone mean that George Osborne is not expected to give away much when he addresses the Commons on Wednesday.

That is in stark contrast to the last Budget, which brought in game-changing pension reforms and beer duty cut by another penny as the economy appeared to boom.

Chancellor George Osborne received a complaint over the bank closure from New Romney Town Council.

Kent companies have called for action to remove “burden on businesses” and bring greater confidence.

Mr Osborne kicked off the lead up the the Autumn Statement by pledging £1.4bn for seven projects on Kent's roads.

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Here is a round up of views ahead of the Chancellor’s speech this week:

Reeves tax partner Clive Relf, who is based at the chartered accountants’ Canterbury office, said: “We expect few fireworks in the Autumn Statement, so close to a general election, but may see some movement to reduce the burden on businesses.

“There may be a reduction in business rates, perhaps extending the small business rate relief scheme, which would be welcomed in Kent along with anything that simplified the tax regime..." - Reeves' Clive Relf

“But whether the Chancellor heeds appeals to cut VAT and employers’ national insurance contributions remains to be seen, particularly given the poor state of public finances.

“There may be a reduction in business rates, perhaps extending the small business rate relief scheme, which would be welcomed in Kent along with anything that simplified the tax regime.

“There have been hints personal tax allowances will rise. But what gets given away with one hand is usually reclaimed with the other. Pension pots and sophisticated tax planning are likely targets for further taxation.”

The Federation of Small Businesses’ Kent and Medway regional chairman Bill Fox said: “The FSB think that the Chancellor will mention infrastructure, devolution of powers (for instance to Manchester), funding for the science and innovation sectors and potentially focus on family support.

“Ideally for SMEs, there will also be mention of business rates reform which is something that the FSB is lobbying on – so many of our members are badly affected by unfair business rates.

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“We’re looking forward to hearing about plans to invest in transport and digital infrastructure including broadband – again this is a big bugbear for many Kent members.

“We’re calling for tax simplification for SMEs as well as better access to finance.

“Finally, with regards to house building, this is an area that so many SMEs can get involved in, we’re calling for a raft of measures to make it easier for local procurement so that small business can bid for big contracts.”

Strood-based Portal Financial managing director Jamie Smith-Thompson said: “This year will go down as the year that made pensions much more flexible.

“The Budget announced wide ranging changes as to how and when people could access their pension, but much of the detail still needs clarification – which we expect in Wednesday’s statement.

"Has the dip in our economic growth meant George Osborne can’t afford any further ‘sweeteners’ ahead of next year’s election?..." - Portal Financial's Jamie Smith-Thompson

“While the changes apply to everyone, anyone aged over 55 should take a keen interest.

“The big question is whether the Chancellor has any other surprises for Wednesday? Has the dip in our economic growth meant George Osborne can’t afford any further ‘sweeteners’ ahead of next year’s election?

“One possible vote winner could be a revision to the much maligned Inheritance Tax. While this may be optimistic, a rise in the limit to £1m is possible.”

Locate in Kent chief executive Paul Wookey said: “Given the on-going fiscal constraints, the Chancellor has little room for manoeuvre, but it is essential that he adopts a pro-business pro-investment Autumn Statement, rather than go for headline grabbing initiatives.

“Locate in Kent has a healthy pipeline of projects but it is noticeable that these are taking longer to convert than before the recession. Much of this is to do with confidence and the government needs to help give businesses greater certainty that now is the right time to invest.

“We would call on the Chancellor to encourage greater investment in new plant and machinery, and support research and development, which in turn will improve business performance and the UK’s global competitiveness.

“Further investment in infrastructure is needed to help unlock land for development, job creation and house building and the Chancellor should provide further support to businesses through the Regional Growth Fund which has been so successful in helping companies expand and create jobs in Kent.”

MacIntyre Hudson tax partner Glen Thomas, who is based at the chartered accountants’ Canterbury office, said: “This is the last Autumn Statement before the next general election so I think Mr Osborne will steer clear of restricting pension saving and a lifetime limit for those saving in ISAs.

“Property ownership will become more expensive and we can expect draft legislation to be published setting out how foreigners will be taxed on UK residential property.

“We should also expect changes to the rules which allow individuals an exemption from capital gains tax on the sale of their main home.

“We might also move closer to a mansion tax in respect of properties of a value of £2m or more.”

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