All eyes will be on The Chancellor of the Exchequer when she reveals the Autumn Budget this Wednesday afternoon.
Prior to the Budget, we’ve taken the time to write to Rachel Reeves, MP with a list of some of the announcements we hope to hear:
Dear Chancellor of the Exchequer,
Our most recent Quarterly Economic Survey (QES) results suggest a rise in the number of businesses who are pausing investment in plant, machinery and training. We hear anecdotal evidence of businesses holding back on commitments. Business confidence is far from certain and we hope this will improve through the announcements you will be making in your Budget.
We have concerns about the future of business support programmes, with the UK Shared Prosperity Fund (UKSPF) due to end on 31st March 2025. We recognise that the new government may want to proceed with this provision in a different format but we urge the government to provide rollover funding for at least the 2025-26 fiscal year, enabling a smooth switch over and avoiding a catastrophic cliff-edge for business support.
Staffordshire Chambers’ of Commerce continues to deliver business support programmes across our region. We’re best placed to deliver business support, simply because we have that clear understanding of our local economy and the businesses in the region. Business support programmes serve as a catalyst for future growth. We ask for clarity and simplification of any future programmes of business support.
We are the appointed deliverer of the Local Skills Improvement Plan (LSIP) and have bridged the gap between the training demanded by business and the training on offer through local training providers. Further government support is needed to build on this success and we ask for an extension to the Local Skills Improvement Fund, which allows training providers to invest in the skills and technology they need to meet the skills needs of businesses, aligned to our LSIP priorities.
We lend our supportfor an expansion of full expensing to include leased assets, in recognition of the fact that not all businesses own their machinery or find themselves in a position to buy new plant and other assets.
Now is a good time to carry out further reform of the business rates system. This review should look at the idea of annual revaluations cycle and a lowering of the multiplier. In addition, we would like to see progress in looking at the future relationship between taxation of in-person and online sales.
We welcomed the raising of the VAT registration threshold to £90,000 but even at an increased level, it still serves as a disincentive to businesses wishing to grow. We call on government to restart the VAT registration review and explore a smoothing mechanism to decrease the bunching effect and limit administrative complexity.
Anecdotal feedback from our members has called for the need to review the current (R&D) tax relief enforcement campaign, ensuring that it acts in a manner which reduces the collateral damage to the economy, the accounting profession, and legitimate claimants. We hope to see improved accountability and improved HMRC caseworker training.
We would also welcome clear and transparent consultation being delivered by government, when changes to the tax system are proposed.
Kind regards
Staffordshire Chambers’ of Commerce
Please join us on the morning after the Budget (Thursday 31st), for our Post Budget Breakfast, In partnership with RSM, a leading audit, tax and consulting advisory firm, and wealth experts, Ironmarket Wealth. Our expert line up of guest speakers will walk us through the Budget announcements, allowing you to consider how proposed adjustments may affect your financial planning and long-term business viability. Click here to book your place:
