Business experts have reacted to Jeremy Hunt’s Budget – with some indicating the Chancellor didn’t go far enough to support entrepreneurs.
Daniella Genas, who helps mentor entrepreneurs across the UK, said: “The energy price guarantee doesn’t go far enough. Businesses are going bust because they can’t afford their energy bills. I am aware of several business owners whose energy costs have increased significantly. The energy companies who are making major profits should be forced to bring costs down, to enable businesses to continue to operate. Businesses are still trying to deal with the impact of covid, brexit and now the cost of living crisis, raising corporation tax is a slap in the face.
The country should be encouraging investment in business as thriving businesses contribute positively to the economy. I was interested to see 12 Investment Zones, which will each receive £80m in funding over five years, including tax reliefs. – This sounds great but what about the businesses who are not within those zones or who are unable to access funding? Surely it makes more sense to keep corporation tax as is.”
But one area Daniella, founder of Be The Boss, backs, is the extra support for free childcare.
She said: “Free childcare for 1 and 2 year olds is amazing for all parents, but will be especially helpful for women wanting to start or in the early stages of business who may have been prohibited from pursuing entrepreneurship due to exorbitant childcare fees.”
Sudesh Sud, co-founder of digital tax return software provider APARI, said: “The increased allowances for pension contributions will be very welcome for those that are pushing against the annual or lifetime limits.
It’s a very generous tax relief for a relatively small number of people. HM Treasury expects the changes to reduce the tax take by £190 million next year (and more in future years). However, a more significant issue – not mentioned – is the tax relief on pension contributions that higher-rate taxpayers fail to claim each year. In recent years, £1.3bn has been left on the table by unwittingly generous taxpayers.
Due to the Chancellor’s recent freezes to tax thresholds, 2.6 million extra people are expected to be pulled into the 40% tax band.
Anyone paying 40% tax and contributing to a pension – for example through their employer’s pension scheme or in a SIPP – is entitled to claim extra tax back.
To put that into perspective, for every £600 that is contributed to a pension, individuals receive £400 from the Government. Half is given automatically, but the extra £200 needs to be claimed manually, via a Self-Assessment Tax Return. For most people, a tax return sounds harder than it is. For those missing out on tax relief, it’s worth the effort.”
Anton Osborne, an expert in residential property with law firm Taylor Rose MW, said:
“The government is all too aware that the most serious housing issue is the lack of new homes being built and in particular affordable new homes. Instead of taking positive action to force local authorities to meet housing targets and ensure the provision of more affordable homes, the government persists in tinkering with SDLT. This in reality amounts to little more than window dressing; appealing to the Tory party electorate whilst doing little to address the real issues.”
