This afternoon Chancellor Rishi Sunak set out the Government’s plans during the Autumn Budget announcements.
After sending his wishes to Sir Keir Starmer, he began his speech, saying: “Employment is up, investment is growing, public services are improving, public finances are stabilising, and wages are rising.”
Sunak assured the House that his Budget will deliver a “stronger economy for the British people.”
However, he says the Budget does “not draw a line under Covid” and warns of challenging months ahead.
Leading Cumbrian accountancy firm robinson+co who have offices in Workington, Whitehaven and Gosforth say that the Budget is an opportunity for businesses to plan their post pandemic comeback.
Brett Bennett, accountancy and tax partner at the firm said: “Mr Sunak started with addressing the increase in inflation as it is set to hit 3.1% and is likely to rise further. A statement that warns businesses that costs are increasing, and they should, therefore, be mindful of that when setting prices in the period ahead. However, regardless of the increase in inflation, the economy is predicted to bounce back to Pre Covid levels by the turn of the year.
“With the above said, Mr Sunak advised that the economy is in a better state than what the government thought it would be, which has allowed him to make some tax cuts.
“As we now know that the projected forecasts during the pandemic were somewhat over estimated, it has left the Chancellor with some room to spend.
“The budget seems to invest significantly in the assistance with business rates for the Retail, Hospitality and Leisure industries, which will no doubt be very much welcomed as they continue to rebuild after being one of the hardest hit industries from the pandemic, which will present those businesses with a great opportunity to plan and focus on their post pandemic recovery.”
Key points of interest for businesses in Cumbria:
- Inflation is currently at 3.1% and is set to rise on average to 4% for next year.
- Significant funding increase of £4.7bn for schools.
- Planned rises in alcohol duty are cancelled and a reform announced to how duties are calculated, which is to be based on alcohol content.
- Planned rise in fuel duty is cancelled.
- A new 50% business rate discount for the retail, hospitality and leisure sector to last one year, together with a reform to the calculation and frequency of business rates.
- A reduction in the taper rate for Universal tax credit from 63% to 55%.
- Reform to R & D investment to ensure UK companies are receiving the reliefs.
- National Living Wage will be raised to £9.50 from April 2022 – a 6.6% increase.
- And finally, annual investment allowance limit has been extended for a further year to
- March 2023 (at £1m).
