Randall & Payne Budget Day Event
PUBLISHED: 16:33 22 March 2013 | UPDATED: 21:16 05 April 2013
Randall & Payne hosted a Budget 2013 event at Gloucester Rugby Club where 120 leading local business people were guided through George Osborne's budget speech by our experts
Randall & Payne hosted a Budget 2013 event at Gloucester Rugby Club where 120 leading local business people were guided through George Osborne's budget speech by our experts.
They then fed back their responses to the budget to Richard Graham, MP for Gloucester, who answered questions live from the House of Commons.
Tax Partner, Chris Mattos, said:
'Any budget affects businesses and households in different ways. We've found by hosting the budget event we have been able to take away the reactions of local businesses which helps us understand what is relevant to them. The general mood at Kingsholm was positive and people were optimistic that the measures would help Gloucestershire's businesses. There were encouraging announcements for businesses looking to employ for the first time and a government backed mortgage scheme to stimulate the property market. However, as with any budget, the devil will be in the detail.'
Immediately after the budget speech, a survey of those present found that:
*60% were 'quite confident' that the budget will support economic growth compared to 61% last year.
*73% of participants' reaction to the budget was 'better than expected'.
*Only 12% thought that the budget would make it easier to recruit new employees. However, that is an increase on the 3% last year.
*43% thought the measures would not make it easier to expand their business, compared with 50% last year.
*32% felt that the measures would 'partly' support exports but just 3% felt the budget would wholly support exports.
*64% thought that the budget measures would 'partly' improve access to finance for their businesses compared with 55% last year.
*64% felt that the budget would assist the coalition in remaining in power.
*74% thought the announcement regarding the cancellation of the proposed fuel duty rise in September was positive.
*64% thought that the tax avoidance measures would 'partly' help to improve the tax collected by HMRC compared with 67% last year.
*73% thought that the measures would 'partly' help new start up businesses compared with last year.
Some budget headlines and reaction from Gloucestershire businesses:
Corporation tax to be reduced for large companies
Corporation tax will be further reduced to 20% from April 2015.
Simon Stapleton from Applied Change said: 'Reducing the corporation tax is a positive measure which should encourage more businesses and entrepreneurs to the UK which should help the economy overall.'
National insurance: 2,000 employment allowance
The government will introduce an allowance of 2,000 per year for all businesses and charities to be off-set against their employer's National Insurance contributions from April 2014. Steve Elliot-Mead from Poeton Industries said: 'The National Insurance measures will help small companies but won't have a big impact - businesses recruit people based on need rather than National Insurance measures.'
Seed Enterprise Investment Scheme: extension of re-investment relief
It was announced that there will be an extension to the capital gains tax relief, which will apply where gains arising in 2013-14 are reinvested in SEIS shares during 2013-14 or 2014-15.Tim Watkins from Randall & Payne said: 'Since the introduction of SEIS there has been the ability to negate a capital gains tax liability by investing in qualifying start-ups. We welcome the announcements today, which will help those that are becoming more aware of this fairly recent scheme.'
Help to Buy
The Chancellor announced the shared equity scheme will be extended with interest-free loans for homebuyers of up to 20% of the value of new-build properties plus bank guarantees to underpin 130bn of new mortgage lending for three years from 2014.Martin Niblett from First Base Employment Ltd said: 'The Help to Buy scheme is really welcome news, both for the construction and property industries but also for other business sectors because it should help with work-force mobility and help to attract people into Gloucestershire where we have a talent shortage in some employment sectors, such as engineering.'
Income tax personal allowances increased from April 2014
The personal allowance will be increased to 10,000 in 2014-15.
Chris Mattos from Randall & Payne said: 'The announcement was largely anticipated and we can expect that once the personal allowance reaches 10,000 it will then be increased in line with inflation.'
And finally, there was a cheerful response to the reduction in beer duty by attendees!Nick Beardsley from Cotswold Food Club said: 'We really welcome the reduction in the tax on beer, not because it will make a huge difference in itself, but because it's an acknowledgement of the importance of the pub as a huge part of communities.'
For more information on how Randall and Payne can help you, call Tim Watkins on 01453 763471