Chancellor's ‘little extras' will not undo 8 years of cuts to public services, says TUC General Secretary Frances O'Grady.
"Working people cannot be fobbed off again with promises of a better tomorrow that never comes. The budget does not undo the austerity that has devastated public services. And it lacks the investment needed to speed up wage growth after the longest pay squeeze in 200 years.
"People know that public services need much more investment. They feel the consequences of austerity where they live. There's more crime and less police. There's longer NHS waiting lists and too few beds. And there's not enough teachers to educate our kids.
"With Brexit looming, we urgently need a national recovery plan to get the UK fit and ready. We will only have a strong economy and safe communities if we rebuild our public services. And we must invest in our industrial base to create well-paid steady jobs in the towns across Britain where they're needed most."
Philip Salter, Founder of The Entrepreneurs Network said:
"Hammond's Budget wasn't short of pro-business rhetoric, and the Budget document itself contains a number of announcements designed to support Britain's entrepreneurs. And we didn't get the predicted scrapping of Entrepreneurs' Relief which will be a boost to Britain's ambitious business owners.
"However, it is by no means a perfect budget for entrepreneurs. While spending on R&D, management training and the boost to the Annual Investments Allowance are welcome, the 2% digital services tax on ‘tech giants' and business rates relief represent missed opportunities for fundamental reform."
Nicky Goringe Larkin, Managing Director of award winning accountancy firm Goringe Accountants said :
"The Chancellor's Autumn Budget was a surprisingly positive one pointing to the end of austerity and forecasting that the economy will remain in growth.
"But the big question in the room is Brexit. All the points made in the Budget were based on an assumption that Britain will get a Brexit Deal, and if it's a No Deal, we can expect another full-blown budget in the Spring next year and the possibility of Britain facing recession.
"Until we know more on the status of an EU deal, companies and individuals can take much reassurance from an increase in spend and forecasted growth in this year's Autumn Budget
"A freeze on the VAT threshold will be a big relief to many businesses, and SMEs in particular will benefit greatly from the continued annual employment allowance of £3,000 per employee from April 2020 and an annual investment allowance of £200,000 to £1 million.
"The surprise announcement to extend the cancellation of stamp duty to first time buyers on properties up to £300,000 and to first-time buyers of shared ownership properties valued at up to £500,000. In addition, the restrictions on lettings relief and PPR may encourage more movement in a property market. This will all bring much needed buoyancy to a currently sluggish property market.
"The increase in the National Living Wage, the rise in the personal income tax and higher rate threshold will also all see more money in people's pockets which are all welcome steps towards an end to austerity."
Mihir Kapadia - CEO and Founder of Sun Global Investments, said:
"As Britain prepares for its withdrawal from the European Union, there was no doubt that today's budget announcement from Phillip Hammond was one of the most anticipated, especially as he announced that austerity is ‘finally coming to an end' with the economy now at a ‘defining moment.' Therefore, this provides the UK with an opportunity to attract businesses and investment from abroad as it looks towards the future after what has been a challenging time for businesses and the public.
The focus on Brexit has been clear and bringing forward income tax cuts will also help bring back some much needed stability to the country as it adjusts to life outside the EU bloc for the first time since 1973. This would benefit 32 million taxpayers and would only emphasise the appeal for investors both domestically and abroad as the country looks to take advantage of some newly re-energised growth and newly found wealth and prosperity.
In addition, by increasing the national living wage, the gap can be closed to other elements of society which have become more difficult and out of reach for many who have been struggling to survive on the current standard. Again, this will bring about some much needed change to millions in the country who will be more able to pump money back into the economy and the services of the state which have been needed for some time.
Moreover, the new digital services tax is expected to raise £400 million for the British economy. After many years of criticism of companies like Facebook often paying below the standard of tax, public services will get a much needed boost. Although some may argue this will only scare away tech firm giants, the benefits that they will get from doing business in the UK will almost certainly outweigh the cost of the tax. Again, this will provide some much needed uplift for the economy to steady the ship of state during the first few months of Brexit.
This sense of stability has been much needed and will continue to show that Britain will remain strong as it looks to cushion the impact of Brexit, and with the government now addressing issues many have been calling for years, it is a clear sign that Britain is ready to move forward and upwards once it leaves the European Union in March."
Angus Dent, CEO of Peer to Peer business lending platform Archover, said:
"The Tory party's promise to put an end to austerity has been revealed as simply words, not actions. Hammond's plans for putting an end to a decade of under-funding do not go far enough - definitive action and continued investment is needed as a lifeline for struggling SMEs and savers.
"The Chancellor's reduction of business rates is music to the ears of SMEs around the country. This time last year, the Chancellor announced the expansion of the National Investment Fund for business - and if that doesn't ring any bells, you aren't alone. A definitive step forward like reducing business rates is long overdue - particularly for small retailers struggling on the British high street. But this isn't enough to cure a decade of difficulty for UK SMEs.
"While it could be seen as damaging for the Chancellor to offer businesses something that could derail negotiations with the EU, this doesn't mean to say that he shouldn't. Once Brexit negotiations are on the straight and narrow, the government needs to demonstrate that it believes in the future of British business.
"The best way to prove this would be to announce a mini-budget focused on advancing SMEs in a still-struggling economy. The Chancellor desperately needs to convince the rest of the world that the UK is still a competitive place to do business - or he risks putting the future of UK businesses in jeopardy. The Chancellor's corporation tax reduction is the first step in the right direction for British businesses. With the strong likelihood that tariff bearings will go up, a reduction in corporation tax will reduce unnecessary friction that disproportionately affects SME owners.
"Without further concrete action from the government, SMEs are being left in the cold to fend for themselves. To battle the chill, businesses must turn to alternative finance options to give them the tools and funding they need to succeed - but nothing will reassure them more than support from their government in turbulent times."
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Post Date: October 30th, 2018