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Ian Larrard reacts to Budget 2018

“Businesses will welcome the Chancellor’s decision to lift the cap on local authority borrowing to help boost housing numbers in the region. The spiralling cost of housing makes it tougher for businesses to attract the skilled workers they need to live and work here, so making an extra £1bn available is a step in the right direction.

“As regards the Chancellor’s decision to close the self-employment tax loophole, it is unfair to suggest that professional service companies are simply a tax avoidance mechanism, when the reality is that most contractors have no choice but to use a limited company. The time is probably right, however, to review these tax rules given that the last change in legislation came back in 1999. A major concern for businesses will be that these changes make it more difficult to recruit contract workers in what is an already tight labour market, therefore highlighting the need for further investment in training and skills.

“As far as the so-called tech-tax is concerned, nobody would disagree that businesses should pay their fair share. However, it would be counterintuitive to penalise tech companies and put at risk investment in the UK economy, particularly in light of the emphasis on embracing new technologies in the industrial strategy white paper.

“Independent high-street retailers will breathe a sigh of relief that their business rates pressures have been eased. Nevertheless, the future of the high-street remains uncertain, and I hope that the £650m is the first of many pots of funding made available by the Chancellor moves to help boost our town and city centres.

“On a final note, it was interesting to hear the Chancellor reaffirm his commitment to fiscal discipline, suggesting that future spending plans would need to be backed up by a strong, dynamic economy driven by business growth.”

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