Michael Nettleton, Director of Nock Deighton, believes that overall, the Budget announcements are positive news for the region and will help to boost confidence and independence amongst consumers.
Mike said: “The announcement that £130billion of mortgage guarantees are being made available is encouraging news for Shropshire, and shows the Government’s commitment to helping individuals make informed decisions, whilst also giving them the confidence to spend again in a responsible and structured way. The Chancellor has also, this time, addressed the need to consider not only new housing developers, but also the needs of other home owners looking to move up the ladder, which I’m hopeful will help boost the Shropshire housing market further. Of course, we’ll have to see what the small print says, but certainly in principle I believe the Chancellor has made some encouraging announcements. With the local housing market having already shown strong signs of continued growth this year, the moves the Government has pledged should certainly result in more confidence over the coming months.”
Alan Adams, Director of Horizons Consultants, said that the Chancellor has made some key decisions that will help ensure the future growth of SMEs across the region.
Alan commented: “A number of the announcements made by the Government today are hugely positive for small businesses in particular, across Shropshire, not least the vital tax cuts that have been pledged. The cut of up to £2,000 in National Insurance contributions should provide businesses with both the capability and the confidence to take on more employees, subsequently helping to reduce unemployment, as well as stimulating the economy as a whole.”
Ian Davies, of Shropshire accountants Tranter Lowe, said businesses would welcome the new Employment Allowance but he was sceptical how much else there was in the Budget for small businesses.
He said: “The new Employment Allowance will reduce employer national insurance costs and so will be widely welcomed by many small businesses. But the detail will have to be examined carefully and the relief does not come into play until next year. With employers paying 13.8 per cent national insurance, and employees 12 per cent, this represents a huge employment cost.
“The extension of the SEED investment scheme is good news for small company financing, but other than that many of Shropshire’s micro and small businesses may well think this Budget was just tinkering around the edges.”
Commenting on the wider economic outlook, Mr Davies said the growth and borrowing forecasts were very disappointing but largely expected.
“Business has had some of the toughest conditions to operate in for decades and a recovery seems to be very slow in arriving. Investment in infrastructure and the Help to Buy-shared equity schemes and mortgage guarantee should help the construction sector get moving – and this is a big economic driver.
“The alignment of corporation tax to 20 per cent will hopefully attract or retain major companies in the UK, but that will depend on them declaring profits to take advantage of the tax rate cut.”
Nicole Howarth, managing director of shipping company Global Freight, in Telford, welcomed the freeze on fuel duty.
She said: “Around 800,000 British families now spend a quarter of their income on running a car. Given that two-thirds of the pump-price of petrol and diesel is tax, Mr Osborne really had no other choice but to axe fuel duty or face mass outrage, not to mention losing votes come the next election.
“By cancelling the 3p rise in fuel duty due in September, the Chancellor has shown he is listening to hard-working families across the UK who said that this increase would have caused hardship.
“The cost of petrol and diesel is already contributing to the squeeze people are experiencing on their incomes. Scrapping the fuel duty increases is a popular move which will help stem higher price inflation and a respite which could be crucial to cash-strapped drivers and companies.”
Matt Jordan, a Director of Shropshire-based DJH Accountants, commented: “The Chancellor’s announcements today are certainly not as positive as we might have hoped for either the region, or the UK as a whole, particularly in light of the downgrading of the economic growth forecast. This suggests that we are set for yet another year of belt tightening, in addition to cuts across most Government departments of 1% for each of the next two years.
“With proposed expenditure on both transport and infrastructure not set to be introduced until 2015, the economy appears to now be reliant on the more immediate pledges to boost the housing market, which I am hopeful will have a positive impact and facilitate growth and employment.
“I was pleased to see the Chancellor’s support for business in this Budget though, with the new employment allowance to see a cut in National Insurance bills by £2,000 for every firm, and the Government’s commitment to increasing procurement from smaller firms by fivefold also welcome news. And, while further off than we might have hoped, it was still pleasing to see the Government pledge to cut corporation tax 1% in 2015.”
Citadel Industries, based on Telford’s Halesfield trading estate, manufactures a range of products for physical security and leisure facilities.
Operations director, Chris Brydges, said: “We’re delighted to see the Chancellor say that education and skills, including apprenticeships, are at the heart of the Government’s long term growth strategy in today’s Budget speech.
“At the end of 2012, more than 18 per cent of 16 to 24-year-olds were unemployed. Businesses want to employ more young people but they need support from the Government to help with training, whether via apprenticeships or other vocational schemes. People are the heart of any successful business. We have been investing heavily in our staff and their training and it’s crucial to British industry that young people are given the best opportunities to build their skills and join the workforce in a productive way.
“Mr Osborne’s commitment to education reform and creating better links between businesses and education will help to ensure that we can grow a workforce equipped for our manufacturing future.”
Richard Hilton, managing director of Telford manufacturer Fabweld Steel Products, added: “For manufacturers the biggest priorities for growth are reducing the burden of taxes and regulation; making it easier for companies to find the finance and skills they need to grow their businesses. Whether this can be achieved by today’s announcements made by the Chancellor, will be interesting to see.
“In the 2011 Budget, Mr Osborne talked about a ‘Britain carried aloft by the march of the makers’, he said Government would back British manufacturers who were key to economic recovery. But two years on, this has not really happened.
“Today he acknowledged that research and development was ‘absolutely central’ to Britain’s economic future, endorsed Doug Richards’ report on making the most of apprenticeships, and cut corporation tax. All this, if followed through and really supported by the Government, could make the difference which was promised two years ago.
“It goes without saying that we’re delighted that a bank levy will be introduced, to stop the banks benefitting from the corporation tax cut.”