More on KentOnline
More on KentOnline
Home Kent Business County news Article
To keep up to date with the developing story, refresh the page.
4:08pm - Nick Paterno, managing partner of McBrides accountants, reckons he has spotted the Chancellor's "stealth tax" in this year's budget.
He said: "The rise in insurance premium tax (IPT) from 6% to 9.5% will be costly to business.
"The 58% increase will also affect most consumers including up to 20 million households with contents, motor and buildings insurance."
3:25pm - Concerns from various people about the impact of the national minimum wage increases, eventually to £9 an hour by 2020.
Amanda Finn, partner at Gullands Solicitors in Maidstone, said: "The proposed increase will have a huge impact on small and medium employers whose wage bill is already the largest expense that they have.
"This raise of over 10% will either have to be reflected in price rises or staff cuts to keep their products and services saleable within highly competitive markets.
"Combined with the consultation that is to take place on Sunday trading laws mean employers face some difficult times in adjusting their employees’ contractual terms and conditions together with their expectations of a work life balance."
3.12pm - Businesses around Kent seem to be coming to terms with the budget announcements.
Amalia Brightley-Gillott, director at Family Business Place, based in Detling, said there were a number of welcome measures.
She said: “The freeze on fuel duty ensures family firms who transport goods around the country and throughout Europe have the breathing space to concentrate on future growth.
“With a large number of family businesses across the manufacturing, agriculture and haulage sectors, a fuel duty freeze is a welcome announcement.”
1:54pm - HH: "The hopes of millions of working people are more important than his hopes of being future leader."
1:53pm - HH: "Anyone can legislate for a surplus but can they deliver it?" OBR says budget will not improve productivity.
1:42pm - Harriet Harman, acting leader of the opposition, says the chancellor is making working people worse off. Also accuses government of "ducking it" on Heathrow.
1:39pm - Small firms to see national insurance contributions reduced. First Conservative government in 18 years "transforming welfare and introducing national living wage" says GO.
1:36pm - Introducing new minimum wage. £9 an hour by 2020. Will be compulsory. Next April will rise to £7.20 and low pay commission recommend future rises. Pandemonium in the house. GO says "Britain deserves a pay rise".
1:34pm - Real increase in defence budget guaranteed each year and commits to NATO requirement for 2% of GDP to be spent on defence.
1:33pm - Higher rate tax threshold raised to £43,000.
1:32pm - Raising tax free personal income allowance to £11,000 next year.
1:31pm - GO: "Welfare reforms will save £12bn by 2019-20."
1:30pm - Will be provisions for exceptional cases including multiple births. GO: "These changes to tax credits are not easy but they are fair."
1:27pm - Lots of shouting going on now. Deputy speaker has had to call for order a few times. Those in social housing will have to pay the market rate. "We will limit support provided to two children." Families with third child will not receive tax credit support for that child after April 2017.
1:24pm - Will freeze working-age benefits for four years. Rents paid in social housing will be reduced by 1% a year for the next four years.
1:20pm - "It's not acceptable that some people leave school and go onto a life in benefits." Abolishing automatic entitlement to housing benefit for 18-21 year olds.
1:19pm - Welfare reforms being revealed now. BBC agrees to take on funding TV licence for over 75s. We knew that one.
1:18pm - Corporation tax is going to be cut. Down to 18% by 2020.
1:17pm - Dividend tax credit to be replaced with £5,000 tax-free allowance.
1:15pm - Annual investment allowance set at £200,000.
1:14pm - "Britain isn't saving enough" says GO. Pensions could be treated like ISAs. Publishing green paper on pension reforms to move from economy built on debt to one built on saving and long-term investment.
1:12pm - Changes to property tax. Want to neutralise buy-to-let landlords' advantage over first time buyers. Want to address rapid growth of buy-to-let. Restricting tax relief available. From 2017 will phase in £175,000 inheritance tax allowance to home if left to children or grandchildren. Can pass on up to £1 million to children free from inheritance tax.
1:06pm - GO says reached agreement to devolve powers to Manchester. Will put fire services in control of mayor among other things. This done in return for creating directly-elected mayor.
1:03pm - Will replace maintenance grants with loans. Will increase loan available to £8,200. Going to link student fee cap to inflation. "Fair to students and fair to tax payers" says GO.
1:02pm - Going to introduce apprenticeship levy on large firms.
1:01pm - No changes to plans for fuel duty. It will remain frozen for this year.
12:59pm - Long term solution to improve roads announced. From 2017 for brand new cars will introduce new VED bands. No change to existing cars. Money will be used for new roads fund "to pay for sustained investment our roads so badly need".
12:54pm - Will gradually reduce bank levy rate but introduce 8% surcharge on bank profits. GO: "Will raise more money from banks in this Parliament but make our country a more competitive place to do business."
12:51pm - Non-dom announcement is the first big announcement of this budget. GO was to put a stop to "fundamental unfairnesses". Will pay same tax as everyone else. Abolishing permanent non-dom tax status.
12:50pm - Boosting HMRC capacity to go after tax fraud, offshore trusts and hidden economy and raise £7.2bn in extra tax.
12:49pm - NHS will receive extra £8bn in addition to £2bn this year, giving net £10bn by 2020.
12:47pm - GO: "Richest paying a greater share of tax than at the start of the last Parliament... those with the broadest shoulders are bearing the greatest burden."
12:43pm - Deficit down to third what the coalition inherited in the last Parliament. OBR predicts UK will have largest surplus in 40 years. GO: "Britain finally doing the responsible thing and raising more money than it spends."
12:40pm - GO: "We should cut the deficit at the same pace as we did in the last Parliament." Tax receipts stronger than forecast.
12:39pm - Growth forecast unchanged for 2016 at 2.3%
12:35pm - GO: "British people trusted us to finish the job... our long term economic plan is working."
12:34pm - George Osborne's budget is underway. He says "this is a budget which puts security first".
12:27pm - Sir Roger Gale, MP for Thanet North, brings up the disruption at the Port of Calais in Prime Minister's Questions. David Cameron urges against "finger pointing".
12:15pm - Not long now until George Osborne's first budget speech as part of a Conservative majority government. Perhaps a little indication that apprenticeships may get a mention during Prime Minister's Questions?
12:04pm - Increasing the take up of apprenticeships has been a flagship reform in the workplace for the government. Steve Leahey, principal of Leigh UTC, the university technical college which opened in Dartford last year, reckons the next task is improving their quality.
He said: "I'm hoping to hear more about apprenticeship opportunities for young people across the area.
"We have heard already about the increase in numbers but its the type of apprenticeship and quality of them that will matter most.
"There are not many higher apprenticeships at present being offered in Kent so I would like to see more movement in this area.
"Companies and apprentices need clear guidance on the type and quality of apprenticeships not just numbers.
"I would also like to see a recognition that UTCs face ongoing financial issues trying to support specialisms such as engineering which are by their nature resource heavy with an uplift in funding."
11:56am - The outlook for the budget looks gloomy if you look at the comments of Kent folk on Twitter.
10:19am - We will obviously keep you informed of all the budget developments here but there will be plenty to analyse afterwards.
McBrides, the auditors based in Sidcup, will be hosting a budget breakfast tomorrow at the London Golf Club in Ash, near Brands Hatch, to discuss all the developments from George Osborne's speech.
It will also look at alternative business funding, including the rise of crowdfunding. It starts at 8am. Details here.
9:11am - In the first post-election budget, the Chancellor will have scope to introduce some unpopular policies in the hope he will be forgiven by the time the next vote comes around five years later.
Pensions, recently the focus of good news, could be a target according to Nigel Stanford, partner at law firm Cripps, based in Tunbridge Wells.
He said: "The Chancellor could focus attention on pensions, possibly opting to restrict the tax relief currently available to a lower rate to counter accusations that they are being used as tax shelters."
However, he thinks this could be a positive budget for business.
He said: "Industry is keen to see simplification and rationalisation of the tax system with the hope of encouraging individuals to invest in the private sector, and so making it easier for businesses to raise capital. Investment in infrastructure is also high on many wish-lists.
"Many business people were disappointed that the March budget didn’t bring an announcement of the level of annual investment allowance (which permits businesses to claim a 100% deduction for plant and machinery) that will apply from January next year.
"Business leaders have been calling for clarity on this in order to be able to make firm plans for capital expenditure."
"Retailers in particular will be anxious to see the reform of business rates create a fair and efficient system.
"Any move towards a requirement for retailers to pay a “living wage” will be unpopular and retailers’ groups have suggested instead that the government focus on improving productivity and develop more “sustainable” solutions to raising pay levels, including expanding apprenticeships and cutting taxes for low earners."
8:37am - George Osborne is expected to make an announcement on the extension of Sunday trading in the budget today. Here is what Nigel Hancock, founder of Herne Bay 4 Business, thinks about extending opening hours beyond the six currently allowed:
"The rose-tinted view of Sundays as roast beef, a pint of ale and cricket on the village green and, of course, the obligatory visit to church is long gone, never to return.
"With only 11% of the UK population regularly going to church and a very large number of families where one of more members have to work on a Sunday anyway, it seems churlish to restrict Sunday shop opening times.
"However, I firmly believe that if retailers, especially the larger ones, are allowed to open or open longer hours then this should create additional employment opportunities rather than simply extending the working hours of existing staff and putting families under additional pressures.
"We'll see what the chancellor says about it today but, if local councils are to have a degree of control around Sunday opening hours, then there should be some agreement that if, for example, a shop is extending its opening hours by 10% a week then there must be a proportionate rise in actual jobs.
"This would act as a control mechanism to force employers to really consider if it's financially worth opening longer rather than just adopting the 'why wouldn't you?' approach plus, of course, it would create some much needed jobs."
8:30am - Here we are on budget day. Chancellor George Osborne is expected to outline plans for £12bn of welfare cuts and the raising of tax allowances.
