Measures to help small firms in Chancellor George Osborne’s Budget this week have been welcomed by Swindon’s business community and business advisors.
The Budget held good news for local firms, according to Ian Larrard, pictured left, director of the Swindon & Wiltshire Initiative.
“With permanent savings in business rates, lower levels of capital gains tax, a freeze on fuel duty and reformed stamp duty system for commercial property, there was much to cheer for smaller businesses,” he said.
“The raising of the small business rate relief threshold was particularly good news, given many long-held complaints from businesses about the business rates system.
“Although there has not been any fundamental reform, increasing the threshold permanently from £6,000 to £15,000 will mean an estimated 630,000 small businesses are exempt from business rates across the country.”
But he said there was a more negative note with the forecast for economic growth productivity downgraded.
“The latter is particularly worrying, as it undermines the country’s ability to create the economic value which underpins our future prosperity,” he said. 
Phil Smith, pictured right, managing director of Business West – the organisation that runs the Swindon & Wiltshire Initiative – said the Chancellor had delivered what will be remembered as a “thin but business-pleasing” Budget. Permanent savings in business rates would be applauded by thousands of small firms across the South West, he said.
“We also saw further cuts to Corporation and Capital Gains Tax rates, a freeze in fuel duty and a devolution deal worth £900m to the West of England region," he added.
“Fears of a potential hike in taxes were unfounded and businesses will breathe a sigh of relief. However there is some worry around the downgrades of forecasts to UK economic growth and productivity, which raises some concerns about our medium-term economic health.” 
Ann Carlton, pictured left, director of private client at regional law firm Thrings – which has its largest office in Swindon – said businesses would welcome certain measures, “not least the 600,000 which are being taken out of business rates, the 250,000 which will pay less in business rates and the nine out of 10 which will pay less stamp duty or remain unaffected due to the ‘slicing’ effect of the rates bringing these in line with the residential property regime”.
She added: “These new rates apply from midnight tonight with transitional provisions where contracts have already been exchanged but completion has not taken place. But while this Budget initially looks promising for small businesses, much scrutiny of the small print will be needed.”
However, she said: “Many will view this as a Budget which was driven towards the UK staying in Europe, with Mr Osborne stating that the outlook for the UK economy would be worse if Britain voted to leave the EU and warning that a Brexit could have a negative impact on business activity and confidence.” 
Swindon-based chartered accountants Banks BHG director Bernard Harrington, pictured right, said the Budget was mostly good news for small businesses.
“It was mostly good, as measures that had been forecast to be announced weren’t, and there were some surprises,” he said.
The business rate reform was welcome and long overdue. Also, the further cut in corporation tax, to 17% in 2020, was a helpful measure, he said.
“The introduction of the lifetime ISA for under 40 year olds, and the raising of the ISA limit to £20,000 a year will bring some flexibility to the pensions system and are good news for savers,” added Mr Harrington. Freezing fuel duty was also a welcome measure for business and individuals alike.
Julian Cockwell, pictured below, head of tax for the South West at accountancy group KPMG, highlighted the attention the Chancellor gave to the region.
“With the success of business in the South West previously hindered thanks to our infrastructure, businesses will be rejoicing at the announcement that Severn Bridge toll crossings are to be halved by 2018,” he said.
“While the announcement brought about laughs from the floor, estimates show that the tolls currently cost the South and West up to £100m in lost trade. The region’s businesses will also benefit from faster internet, with the promise of a £14.5m grant for ultrafast broadband.
“Our SMEs will welcome the announcement of lower stamp duty and corporation tax and double the business relief rate for small firms. Better still, the increase in the personal tax allowance and no movement on rumoured cuts to Entrepreneurs’ Relief, will help offset the abolition of dividend relief, incentivising small enterprises in the region to keep growing.”
Paul Verwoert, managing director of Corsham-based Hartsfield Financial Services, said the Chancellor had clearly made an effort to make his Budget appeal to small businesses.
“The increases announced to rate relief allowances should mean that 600,000 of the smallest companies won’t have to pay business rates. This should save £6,000 per annum on average; plus the £2,000 Employment Allowance will increase to £3,000 from April 2016, reducing the cost of employer National Insurance contributions,” he said.
“We would like to have seen a reduction in red-tape, but overall if you add in the drop in corporation tax, a reduction in commercial property stamp duty for some smaller businesses, and a reduction in capital gains tax, it’s good news.”
Paul added that the lifetime ISA was an “interesting twist”, and the increases in personal allowance and the ISA investment limit were good news for individual
s.
“We see this as a ‘not really offending anyone’ Budget, but warmly welcome the recognition it offers for Britain’s ‘Nation of Shopkeepers’,” he said. “The early mention of ‘lower taxes on business and enterprise’ certainly set the tone for the rest of George Osborne’s speech.”
Shane Horsell, pictured right, who owns the TaxAssist Accountants franchise in Swindon and Royal Wootton Bassett, said the doubling the threshold for claiming small business rate relief would go some way to help level the playing field for small firms when competing against online only product and service suppliers.
The continued freeze on fuel duty was further good news. “For many small businesses, particularly those which deliver products and services to our homes, cars and vans are essential not a luxury,” he said.
Cuts to Capital Gains Tax, changes to commercial stamp duty and plans to reduce Corporation Tax from 20% to 17% by 2020 were also welcome.
“At last we have a Budget which has some measures to back small business and support the enterprise and hard work of this vital sector,” he said. “They are facing new responsibilities and pressures, including workplace pensions schemes, the national living wage, dividends taxation changes and quarterly tax reporting.”
However, tax director in accountants Grant Thornton’s regional office, Jenny Batchelor, pictured left, said many of the business-friendly measures announced by the Chancellor had made the tax system even more complex.
“Although aimed at benefitting business, a lot of these will require more rules and regulations,” she said. “Radical simplification and greater transparency and understanding would increase productivity and compliance – a win-win for the economy and society more wholly.
“Complexity has serious commercial implications for business. We know, for instance, that more than half of businesses say the current tax system slows down commercial decisions – with mid-sized businesses the most affected by this. It’s therefore disappointing that the Chancellor did not use today’s opportunity to push for real and material change to simplify the system.”
Chris Wood, CEO of Develop Training Limited, which provides compliance, technical, and safety training to the water and energy sectors in Swindon, welcomed the £700m increase for flood defences.
Mr Wood, pictured right, said it was clear many councils needed to urgently review their ability to manage flood risk. 
But he added: “In light of the chronic skills shortage in the construction industry, Britain will struggle to cope with issues such as flooding and to keep our existing infrastructure intact.
“We would have liked to have seen in the Budget headlines something about how the Government intends to address the issue of training and development in mainstream industrial sectors, possibly through enhanced funding opportunities or other incentives.
“More importantly, the Government also needs to explain how it will effectively, and financially, hold to account the ultimate owners of those privatised utility companies to provide for an adequately trained workforce in the future.”
Develop Training Limited delivers technical and safety training from a dedicated centre in Swindon and four other sites across the UK.
There was relief at one measure the Chancellor did not include in the Budget – devolving Air Passenger Duty to Wales. West of England business leaders had been concerned that such a move would have allowed Cardiff Airport to scrap the duty and use that to attempt to lure passengers and airlines away from Bristol Airport.
Bristol Chamber of Commerce and Initiative chief executive James Durie said: “We are pleased that the Chancellor has listened to the business voices from right across the South West.
“We have been expressing concern that this move would have impacted negatively on our regional airports, in particular Bristol Airport, and potentially reduce our connectivity with global markets.
“We seek measures that will make the South West and indeed the whole of the UK more successful, not ones that change the economic playing field and just transfer existing activity across boundaries. Together with our chamber of commerce colleagues from right across the South West, we wrote to George Osborne asking him not to push through with this change, and we are very glad he has listened.”
