The Chancellor of the Exchequer, Rishi Sunak, has unveiled a budget to support businesses as the economy re-opens. Short-term grants to retail and hospitality, and extensions of business rates relief and furlough, provide reassurance to many firms beyond the end of the roadmap out of the lockdown.
Budget: Summary of Key Announcements
Responding to the Chancellor’s budget, Babs Murphy, Chief Executive at the North & Western Lancashire Chamber of Commerce said:
“Businesses will welcome much of this budget. There is support that is essential to help businesses recover in both the short and longer terms.
“New grants for the retail and hospitality sectors will help many shops, pubs and hotels get through to the end of restrictions. Extensions to furlough, business rates relief and VAT reductions offer some security as they not only restart, but to recover and rebuild.
“While we welcome many measures taken in this budget, how successfully business rebuilds needs to be closely monitored. Kickstarting the economy is a necessary to start in repaying the debts taken on over the pandemic. If the bounce back isn’t as profound as hoped, the Chancellor must be prepared to step in.”
Geoff Mason, Policy Manager of the North & Western Lancashire Chamber of Commerce said:
“The Chamber network has made calls for the government to provide immediate support to those firms still affected by the pandemic and to ease the burden of taxation as they re-open. The measures taken by the Chancellor respond to these calls.
“We also called for the Chancellor to encourage businesses to invest and grow. The ‘super-deduction’ investment incentive is a positive step that will do just that. Along with £12bn of funding to the National Infrastructure Bank, this is good news in the drive to modernize and improve productivity.
“While news that further support will be provided for the self-employed, including those who completed their first tax return, income support that takes into account income from dividends was missing. This leaves some company Directors without recourse to the scheme.
“The news that Corporation Tax will rise is not a surprise, but it is softened by the small profits rate staying as it is. This will protect smaller businesses.
“Locally we are pleased to hear that Leyland and Preston were among the new Towns Fund awards announced by the Chancellor.”
Does this budget help you?
If you have any feedback on how the budget will affect your business let us know: call 01772 706582 or email geoffm@lancschamber.co.uk.
