“The Chancellor has taken baby steps in the right direction, but let’s not get too excited. Having wasted a year to justify the politics of power, at last the Chancellor has come clean that tax cuts promote business and growth and has acknowledged the importance of growth to prosperity and public spending. Poor forcasting by the BoE and the OBR failed to recognise the underlying strength of the economy and the inevitable fall in inflation, which has little to do with the Chancellor and PM.
The increase in the minimum wage, although a welcome boost for workers will put pressure on family businesses and can only be paid for by higher prices, loss of jobs or a curb on investment, the very thing the Chancellor says he wants to encourage.
The continuation of targeted reliefs for investment in plant and machinery is to be welcomed, but why not reverse the Corporation Tax hike and extend the reliefs to commercial property.
Investment in apprenticeships in manufacturing and tech is a positive step provided the monies don’t disappear into the bottomless pit of quango land and the education system.
The predicted ambition for growth remains tepid and will result in the U.K. continuing to become relatively poorer. A radical boost through business tax cuts, real deregulation, access to investment finance and support for exports is what is needed.
Most of all this government is presiding over the highest tax take since WW2 while public sector productivity tanks and growth flatlines.
John Longworth is Chairman of the Independent Business Network of family businesses

🐦🔗: https://nitter.cz/john4brexit/status/1727365168315629980#m

[2023-11-22 16:35 UTC]