FIVE meaningful steps Chancellor of the Exchequer John Healey could take to make his upcoming Budget more business friendly have been outlined by a leading accountant.
Paul Hornby, Managing Director of JF Hornby & Co, believes too many successive Budgets have been punitive towards the small and medium-sized businesses that make up the backbone of the UK economy.
Now he is calling for a greater focus on common sense and stronger recognition of the entrepreneurs, employers and business owners who take risks to create jobs, wealth and opportunities in their communities.
Discussion: Karina Gallagher, MD of Hornby Commercial and Paul Hornby, MD of JF Hornby & Co
The intervention comes after the Chancellor used a recent speech ahead of the Autumn Budget on October 28 to pledge to make Britain “growth Britain again”, describing economic growth as the Government’s number one priority and acknowledging that businesses continue to face pressure from rising costs.
Paul said: “It’s encouraging to hear growth being talked about as the Government’s number one priority because that’s exactly what businesses want as well. The problem is that many firms feel they’re being asked to grow with one hand tied behind their back.
“Business owners are dealing with rising employment costs, energy costs, uncertainty around tax and increasing administrative burdens.
“If ministers genuinely want the private sector to drive economic growth, they need to create an environment where businesses have the confidence to invest and expand.
“Most business owners aren’t looking for handouts. They’re looking for common sense, stability and a government that understands the realities of running a business.”
Ahead of the Budget, Paul has outlined five measures he believes would make a meaningful difference:
- Give businesses certainty on tax
Commit to a stable business tax framework for the remainder of the Parliament, allowing firms to plan, invest and recruit with confidence. - Make it cheaper to employ and train people
Reduce the burden on employers taking on staff, apprentices and trainees, particularly smaller businesses which create a significant proportion of new jobs. - Make investment incentives work for SMEs
Simplify capital allowances and R&D investment support schemes so smaller companies can access them more easily and invest in productivity, technology and innovation. Focus on encouraging businesses to invest in equipment, technology, innovation and productivity. - Unlock finance for growing businesses outside London
Improve access to growth capital for ambitious regional businesses looking to expand, export or scale. - Cut the cost and delay of doing business
Reduce bureaucracy, speed up planning decisions and simplify interactions with government.
Paul added: “The Chancellor has spoken about creating a country of wealth creation. That’s exactly the right ambition, but wealth has to be created before it can be taxed or redistributed.
“The UK isn’t short of entrepreneurial people or good business ideas. What we’re short of is confidence. Give businesses certainty, reward investment, make it easier to employ people and remove unnecessary barriers, and growth will follow.
“If this Budget is serious about growth, it needs to send a clear message that Britain backs the businesses creating jobs, generating investment and keeping local economies moving.”
