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South: Business leaders respond to the Budget

22 November 2017
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Finance

Richard Coleman, senior associate, Charles Russell Speechlys, said: “To prevent the inappropriate use of EIS/VCT schemes, the Government has today introduced a principles-based test to determine if, at the time of the investment, a company is a genuine entrepreneurial company.

"Although we lack some of the detail and today’s announcement will be developed with guidance, it seems that the winners of this are entrepreneurs, start-up companies, genuine high-growth companies and those who want to invest in them. The losers will be businesses which are heavily asset backed, which was expected and has been the direction of travel for some time.”

Stuart Thomas, director of fleet and SME services at the AA, said: “Today’s Budget announcements are positive news overall for the UK’s fleets, with plans confirmed to allocate £400 million for the fitting of electric car charging points, £100m to boost the sales of clean cars and £40m in charging research and development.

“This funding will go some way towards driving electrification, which 63% of businesses expect to embrace within five years, according to the second annual Operational Fleet Insight report, produced by the AA and BT’s Fleet Solutions. Indeed, 82% of AA members say they have been deterred from purchasing an electric vehicle by the lack of charging points nationwide, so a rapid acceleration in infrastructure roll-out is to be welcomed."

Emma Eaglestone, lead director at property consultancy JLL in Southampton, said: "This Government has recognised that empty housing targets will no longer wash with the voting public. 300,000 homes per year is very ambitious, but delivery volumes are up by 74% since 2013. At this rate Government could achieve its target by 2020, in time for the next general election.

"However, there is a looming labour crisis that will undermine this target if it is not addressed. The shortfall of workers means a modernisation towards digital construction techniques is badly needed. Modular construction can also make an important contribution to quality improvements alongside higher volumes, crucial to restoring public confidence in the industry.”

Ross McNally, executive chairman of Hampshire Chamber of Commerce, said: "Thanks to pressure from chambers of commerce, the chancellor has taken some positive steps to lessen the impact of business rates, an iniquitous tax that takes no account of profitability or ability to pay. By linking valuations more closely to the typically lower consumer prices index rather than the retail index, many businesses will see reductions in their bills from next April. It’s only a start however – in most cases the amounts will be small and the overall business rate system remains fundamentally flawed and in dire need of deeper reform.

“On VAT, we are pleased that he resisted the temptation to lower the threshold at which businesses must register. That will be a welcome relief for many start-ups and small businesses among our membership."

Richard Baker, managing partner at EY in the Thames Valley and South commented: “In a budget where we anticipated a “steady as she goes” approach, there are a number of announcements that will be positive for business and people across the Thames Valley and South.

“The £1.7 billion Transforming Cities Fund will mean necessary spending on improving buses, trains and cycle lanes to drive growth and improve connectivity across the region.

“The chancellor also announced his plan to build 100,000 new homes in Oxfordshire by 2031, which will create a dynamic new growth corridor.

“In this Budget, the focus on Britain enhances the technological revolution was evident and with an established tech community in the Thames Valley, we are well-positioned to lead on this change. All businesses now have the challenge of embracing the technological revolution in a way that drives productivity, and exploring how existing staff can be reskilled and redeployed effectively.”


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