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Chris Mattos (from Randall and Payne) said:
Generally an encouraging budget which contains measures which will definitely impact on local companies:
• Any deregulation will certainly be welcomed by small businesses. Deregulation for very small businesses for up to 3 years will be really helpful.
• Beginning the Green Bank a year earlier than forecast is good news for Gloucestershire. This should mean that it’s easier to get investment for green initiatives than it currently is with high street banks.
• Changes to EIS qualification mean that more local businesses will be able to take advantage of this scheme.
I also applaud the government’s commitment to tackling tax avoidance schemes.
It’s encouraging that recommendations from James Dyson and consultation with business leaders regarding Research and Development grants are to be implemented. This will have a major impact on businesses that invest in Research and Development. An important point to remember here is that it’s not necessarily cutting-edge technology that needs to be undertaken. Technical improvements to existing products/software, also count. Entitlement to these grants used to only apply to businesses spending over £10,000. Abolishing this is a big plus for small businesses in the county.
We’ve heard a lot of encouraging tax initiatives and a well-written speech which gives an air of confidence. However, we need to see the detail and how this will be followed through before really measuring the impact on businesses in Gloucestershire.
Reaction from local business
A survey of local businesses carried out immediately after the budget found that:
76% were ‘Confident’ that the measures will support economic growth.
62% thought the budget was ‘better than expected’.
72.2% thought the budget would have a ‘neutral’ affect on an average working family.
Chris Copner of Soho Coffee: ‘I’m thrilled about the 1p decrease in the fuel as it will give customers more money to spend on coffee!’
Suzanne Hall-Gibbins, Director of Gloucestershire Chamber of Commerce said: ‘The mood of the business community was very positive following the Budget. Although there is an element of unease about the lack of detail for support for established and medium-sized businesses. The focus was very much on start-ups. Of particular interest was the announcement of the Swindon-Kemble line which we have been lobbying for, for many years, which has many positive benefits for the area. As always the devil is in the detail.’
Patricia Topping of SLG Beauty said: ‘Our company has been trading for 25 years and employs 84 people. Any deregulation will definitely help us, as about 5% of the workforce employed in bureaucracy only. However, we need to know exactly when this is going to happen. It sounded like it may be some time which obviously isn’t great.
Fuel duty will benefit the company and have an instant impact on transporting product and materials so that’s good news. However, it looks like start-up businesses have some good incentives but not a lot there for established small businesses. Consumer confidence does seem to have risen though which should benefit all businesses.’
Martyn Smith of Converge Networks said: ‘Obviously the fuel duty reduction will have a big and instant impact on our businesses. I’m also encouraged by the help with the apprenticeship scheme – if that does happen it will make things a lot better. I’m disappointed that there’s very little for established small/medium businesses. One of our biggest issues is getting companies, to pay their bills on time and nothing has been done to tackle that!’
Michael Carter, MD of Carter Construction, said: ‘Currently, like many businesses, we’re being squeezed by the increasing costs of materials so the reduction in fuel duty and reduction in Corporation Tax will benefit us.
However, the item of greatest interest is the potential shake-up of the planning system. Several projects are currently delayed by the planning process so anything that could speed things up could make a big difference. I’m not convinced that the changes to allow residential on business premises will actually work in practise as local people may block this.
There were a couple of other items which interest us but we’ll need to wait for the detail. Increasing the number of apprenticeships is good but only if the work is there for these new apprentices to do! Help for first-time buyers may improve optimism in the housing market but won’t directly impact on this business.’
For more information on how we can help you call Chris Mattos on 01453 763471
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