Chancellor George Osborne announced a number of measures that could boost the economy in and around Swindon in last week’s Budget.
Dominic Bourquin, corporate tax partner at Swindon accountancy firm Monahans, said the Chancellor had served up what appeared to be a “Budget for individuals rather than businesses as we might have expected so near to a general election”.
“For those who enjoy a tipple, populist reductions of 1p in beer duty, 2% off cider duty, 2% off Scotch whisky duty and a freezing of wine duty will be welcome, and the cancelling of the proposed fuel duty rise due in September will help wages go further,” he said.
Mr Bourquin welcomed the previously announced full-scale review of business rates “as this most pernicious of taxes has a huge effect on all businesses, particularly those at the smaller end”.
But he added: “A review may not necessarily herald the sweeping changes that many businesses have been asking for, so we welcome the move whilst also ‘keeping our powder dry’ until we have the results of that review.
“The only other significant business measure was related to the Annual investment Allowance. This currently allows a busines
s to spend up to £500,000 per calendar year on capital items like plant and machinery and receive tax relief in full.
“The allowance was due to reduce to £25,000 on January 1 2016. The Chancellor feels such a large reduction is unfair, but did not then announce what it will be from January 1 next year.
“So I think we can conclude, it will not fall to £25,000, but will settle somewhere between there and £500,000.”
The housing zone, among 20 announced by the Chancellor, is a pilot to speed up homebuilding on brownfield sites through the use of streamlined planning powers, cheaper borrowing from Government funds and priority access to planning and technical support.
Phil Smith, pictured above, managing director of Business West – the organisation behind the Swindon and Wiltshire Initiative – said businesses would welcome many of the measures on business tax.
“Business rates reform was trailed in the Autumn Statement, and plugged again,” he said. “We await the detail with keen interest, but as reform has to be fiscally neutral, it is hard to see how we are going to see really fundamental reform of this out-dated and unfair tax, without ‘robbing Peter to pay Paul’.
“There was better news for the self-employed, with the abolishment of class II National Insurance contributions. The abolishment of the annual tax return will be good news for all those small traders and the self-employed who have ever struggled with time consuming returns on the 31st of January – but it is unclear just how simple the alternative will be. The cancellation of fuel duty rise pencilled in for September will also reduce pressures on many firms’ bottom lines.”
Malcolm Emery, a partner at regional law firm Thrings – which has its largest office in Swindon – believes some mid-market businesses may be disappointed by a lack of support from the Chancellor. 
“Despite significant tax revenues being generated in this market, successive governments have failed to invigorate businesses by introducing innovative tax reforms to help boost their profitability and the economy as a whole,” said Mr Emery, pictured, a dual-qualified chartered tax adviser and solicitor.
“A large number of these businesses operate in the South West, and many will argue that the lack of tax reforms has impacted on the performance of the local economy.”
However, he said Mr Osborne was trying to assist smaller companies raise finance to help their businesses grow – particularly those in the all-important tech sector.
“He announced changes to the Enterprise Investment Scheme (EIS) and Venture Capital Trusts so that both schemes are compliant with the latest state aid rules. The EIS in particular is a very popular way for fast-growing companies, particularly those in the technology sector, to raise working capital from private equity sources.”
Mr Emery said the Chancellor appeared to be planning for his next term of office by delivering a very measured Budget rather than “going out with a bang”.
Phil Brownsord, pictured, regional director of EEF, the manufacturers’ organisation, said the sector would give the Chancellor three cheers, particularly for his measures to boost exporters.
“His decision to bring forward compensation for industries facing vast and uncompetitive energy costs, such as steelmakers, is also welcome but the full package needs to be put in place as soon as possible,” he said. 
“In addition he has committed to a stable and competitive tax regime, which we wholeheartedly support and which should go down well with local businesses.”
Further efforts to make the research and development (R&D) tax credit more accessible for small claimants were also welcomed along with measures to help the oil and gas sector and encourage investment.
“This longstanding relief within the tax system has come to be valued by manufacturers for whom investments in R&D are becoming ever more important for business success,” he said. “If these changes can bring more companies into the scheme and encourage higher levels of investment in innovation, that can only be good for UK plc in the long run.”
On the Annual Investment Allowance, Mr Brownsord added: “Recognition that action is needed on the level of investment allowances will be welcomed by manufacturers. This will ensure we don’t lose any momentum in the business investment recovery by withdrawing extra support through the tax system too soon. We now want to see a long term solution to creating a stable and competitive regime for investment announced later in the year.
“In addition, it is good to see Government continue to press ahead with support for world-class technologies with new investment in science and innovation infrastructure.”
National Association of Cider Makers chair Martin Thatcher cheered the 2% cut in duty on cider, saying the industry would raise a glass to the Chancellor this evening.
He said: “We are delighted that the Chancellor has decided to support the British cider industry by cutting duty in his Budget. This is a very welcome decision and proves the Government understands the huge importance of our industry to rural communities.
“This important decision will be celebrated by cidermakers up and down the country as it protects the investment they have made over many years to grow the industry and support thousands of jobs.
“We and all cider drinkers will be raising a glass of delicious cider to the Chancellor this evening.”
Tax partner at accountants EY in the South West, Karen Kirkwood, pictured, welcomed the £40m investment to develop Internet of Things (IoT) technologies. 
“But she added: “However, the Chancellor needs to remember both the risk and opportunities for the UK of the IoT.
“The interconnectivity of people, devices and organisations in today’s digital world opens up many exiting new opportunities and the ability to create efficiencies across key areas such as health and social care.
“However, there remains a whole new playing field of vulnerabilities as traditional organisational perimeters erode and existing security defences come under increasing pressure, requiring a rethink in how organisations approach cybersecurity.
“Therefore it is imperative that the funding allocated by the government not only supports the opportunities posed by the IoT but addressed the inevitable risks it also brings.”
Richard Mathews, director at Swindon-based Banks BHG chartered accountants, said at face value it looked a positive Budget.
He highlighted the scrapping of Class 2 National Insurance for the self-employed and for businesses employing youth apprentices along with the previously-planned review of the business rates system.
“But we would like to have seen the Chancellor announce what the Annual Investment Allowance will be beyond December,” he said.
“Currently, it is £250,000 but it could drop back. And we would like more detail about the changes to Entrepreneur Relief, and to the film and tax credit scheme.”
