Chancellor faces Budget pressure

posted by 3 years ago in News

Pressure is mounting on the chancellor to deliver a fair deal for businesses in his Autumn budget.

The Institute of Fiscal Studies revealed Philip Hammond is between “a rock and a hard place” for his forthcoming budget and may have to abandon his target for getting rid of the deficit if he wants to increase spending on public services and infrastructure.

Key issues affecting businesses will be a likely cut in the forecast for productivity growth and uncertainty about Brexit.

It’s been revealed that the productivity of UK workers fell in the three months to June despite the chancellor highlighting it as the priority in his last budget.

The Federation of Small Businesses (FSB) is urging Philip Hammond to deliver promised improvements to digital and road connectivity while removing barriers for small housebuilders.

Mike Cherry, FSB National Chairman, said:

“Achieving a game-changing productivity boost will only happen through incremental gains among the smaller firms that make up 99 per cent of our business community.   

What we hear from small firms is that roads, and local roads in particular, really matter when it comes to mobilising goods, services and staff. The Government has pledged significant investment in roads outside of motorways – it’s now time for them to deliver. The Transport Secretary’s £345 million commitment last week marks a welcome step forward, but there’s far more work to be done.  

“Promoting innovation must be central to the Government’s industrial strategy. The Budget is the Chancellor’s opportunity to position the UK as best place in the world to invest, innovate and grow. We look forward to him seizing that opportunity by ruling out any new business tax increases, maintaining entrepreneurial and investor reliefs and expanding fantastic initiatives such as the SBRI and R&D tax credits.”