Chancellor right to focus on the fundamentals in Budget 2015

Federation of Small Businesses

The Federation of Small Businesses’ Manchester & North Cheshire region has welcomed measures in today’s Budget, particularly news about the GM region being given the opportunity to retain more of the tax take from business rates.

Simon Edmondson said: “Once again we have seen the Chancellor focus on Greater Manchester with respect to his announcement on additional business rates. While it is yet unclear what the actual figures might be, this is great news if it means the region’s authorities are able to access a generous new source of funding.

“Of course, this extra funding will be entirely reliant on business growth, which means money levied should be automatically reinvested back into business. We look forward to a firm commitment on this from the AGMA authorities.

“On a more general note, our members will largely be encouraged by many of today’s announcements. The review into business rates is long overdue. When complete, it must deliver tangible benefits to businesses and not end up as just another report that sits on the shelf.

“Finally committing to set the Annual Investment Allowance at an appropriate level at the Autumn Statement will provide the certainty needed for businesses to plan and invest - something badly needed if the UK is to raise its productivity.

“We are especially pleased that the idea for a single digital tax account is being taken forward too. This is something we have long advocated – featuring prominently in our 2015 Business Manifesto. Implemented properly, this should reduce the time businesses take to complete their tax returns, and offers opportunities to deliver targeted support. The abolition of Class 2 National Insurance contributions for the self employed is also a welcome step.

“There were some helpful measures also announced to help businesses get connected. Access to superfast services is a key requirement for small businesses. Delivery of this strategy will be critical to future-proofing the national economy, although here in Greater Manchester the roll out is underway and progressing. Rural economies like those in Cheshire will be pleased with this.

“Publicans will be raising a toast too, with a penny off a pint of beer, and 2p for cider. Any helps for pubs has to cheered.

“Lastly, fuel duty being frozen is a positive shot in the arm for businesses. FSB members consistently say that their most important means of transport is by road. We have campaigned hard against fuel duty increases, particularly as the UK still has one of the highest fuel duty rates in the EU. We’d liked to have seen more of a fiscal commitment to freezing duty for longer, but this is certainly not to be sniffed at.”