Chancellor George Osborne’s Budget tomorrow is being overshadowed by the EU referendum, says Swindon and Wiltshire Initiative director Ian Larrard. But the contents of the famous red box will still be important for local firms.
“This might be the quietest Budget in living memory. With the political headlines monopolised by the EU referendum, there’s a temptation to forget it is happening. But for the Swindon and Wiltshire business community, it is still one of the most important dates of the year. 
George Osborne’s speech is likely to be remembered for two things; devolution and additional business costs.
Since the Scottish Independence Referendum kicked off the devolution debate, we’ve seen deals handed out across the county, from the Northern Powerhouse to Cornwall, but the West of England is still waiting.
The signs show that we are getting closer on both, and there is a good chance that they will feature in the Chancellor’s speech. This will mark a significant turning point for the local economy, and it is vital that the deals are ambitious and far reaching.
Whilst we are on the subject on devolution, there is a key decision to be made in this Budget, and if it goes the wrong way it could cost the South West £843m and over 1,500 jobs.
This issue, of course, is the devolution of Air Passenger Duty to Wales. We are supportive of the devolution of power from Westminster, but not when it displaces economic activity, rather than creates it.
In this instance, unbalancing the playing field in what is currently a competitive market will severely hurt the South West, with a combination of less consumer choice, job losses and reduced economic activity coming as a result.
“The second issue, as always, comes down to taxes. As part of the British Chamber of Commerce, we are campaigning for a simpler, better, and more competitive tax system, which in turn will help to support investment and growth.
“Recently we’ve seen the Chancellor announce a few direct and indirect taxes on business, and given the continued pressure on government finances, that could leave businesses in the firing line for a hike in taxes.
“We know that the South West economy is performing strongly, with over two thirds of local businesses telling us they are confident for the year ahead. But across the country, companies are still facing high business rates and unstable costs. We are calling for the Chancellor to announce no new taxes on businesses or entrepreneurs for the remainder of this Parliament.
“In the midst of EU mania, businesses will still watching keenly tomorrow, and it is vital that Chancellor delivers some good news.”
