Budget offers short-term help but lacks growth incentives, expert warns

Summarised from 4 outlets · Updated 28 Oct, 16:43 · Archive

A North West tax expert says the Budget provides short-term relief but little to boost business confidence or stimulate regional growth.

Chancellor John Healey's Budget offers short-term help for households and businesses but contains little to significantly improve business confidence or stimulate growth across the North West, according to a regional tax expert.

Tony Medcalf, North West tax partner at national accountancy firm MHA, which has an office in Kendal, said the Chancellor had attempted to balance support for households with maintaining confidence in the public finances. The measures announced include continued VAT relief on electricity bills, changes to gas standing charges and an extension of the 5p fuel duty cut.

The small business rates relief threshold for retail, hospitality and leisure firms will also rise from £12,000 to £18,000, while regions are due to receive greater control over spending. Medcalf said the business rates and devolution measures would be welcomed by companies across the North West.

However, Medcalf added that there is 'relatively little here which will fundamentally improve business confidence or change the economic outlook'. Businesses across the region have remained resilient despite rising energy and employment costs, high borrowing costs and continued economic uncertainty, he said.

Mediacalf warned that firms need a stable tax environment and stronger incentives to invest, recruit and expand. He said: 'Ultimately, a Budget designed to be popular is not necessarily one which delivers the sustained economic growth our region and our country needs.'

The Government says the Budget will provide households and businesses with 'breathing space' from rising costs while supporting investment and maintaining stability in the public finances.

How it is being reported

• Budget offers short-term help but little to boost business confidence, expert warnsThe Budget offers some short-term help but contains little that will significantly improve business confidence or stimulate growth across the North West, an accountancy expert has warned.Cumberland News · 28 Oct, 15:57
• Budget offers short-term help but little to boost business confidence, expert warnsThe Budget offers some short-term help but contains little that will significantly improve business confidence or stimulate growth across the North West, an accountancy expert has warned.Whitehaven News · 28 Oct, 15:57
• Budget offers short-term help but little to boost business confidence, expert warnsThe Budget offers some short-term help but contains little that will significantly improve business confidence or stimulate growth across the North West, an accountancy expert has warned.NW Evening Mail · 28 Oct, 15:57
• Budget offers short-term help but little to boost business confidence, expert warnsThe Budget offers some short-term help but contains little that will significantly improve business confidence or stimulate growth across the North West, an accountancy expert has warned.Westmorland Gazette · 28 Oct, 15:57

In this story: Tony Medcalf · John Healey · MHA · North West · Cumbria

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