Member Article

The Autumn Statement: South East business reactions

The Autumn Statement was delivered earlier today by Chancellor George Osborne and South East businesses have commented upon the official statement.

Stamp Duty

Lochie Rankin, Director, London-based Lichfields property search agency said: “When it comes to stamp duty, a number of organisations (including RICS) have been lobbying the government to get completely overhauled. “The key is to do away with the slab element of the tax and ensure that there is relief at various rates over the various values, ensuring that it accurately represents the underlying value points of the houses in question.”

Alistair Bingle, managing director Chessington-based Bishop’s Move, said: “The announcement of Stamp Duty reform has been a long time coming and will give the housing market a much needed boost as it ambles along its traditional pre-Election slow-down. “By reducing the Stamp Duty penalty which buyers face when crossing into a higher stamp duty tax band, this will have a significantly positive impact on getting the market moving by encouraging people to upsize and increasing the supply of houses for first-time buyers, who are key to stimulating the UK property market.”

Andrew Shaw, private client partner with accountants London-based Kingston Smith: “End of slab rate for Stamp Duty: “This is a really elegant solution, “The average home-buyer is released from the tax burden which made that first step on the ladder so difficult. At the same time, those who are in a position to pay the additional charge will now do so - including overseas buyers investing in London real estate. On the other hand, these measures are expected to exacerbate the cooling of the Capital’s high end property market.”

Business rates

Casey Bowden, MD of Woking’s Harvey Water Softeners said: Great to see that business rates are going to be reviewed. The increase in tax credits for R&D is great news and supports us well in our £2.5m manufacturing investment. We’re keen on building a new factory and this will help us push towards this. Keen to see more details on the £45m export package and understand how this will actually help us though.

Infrastructure development

Philippe Gelis, CEO and co-founder of London-based foreign currency exchange company Kantox said: “It was promising to see that the issue of exports was a feature in the 2014 Autumn Statement. Given the state of the Eurozone, it is wise for the UK government to encourage small businesses to export to more flourishing economies, such as Asia, Africa and South America. The £45 million boost for first time exporters will be a good start for those companies looking to grow. “It is important that the government doesn’t stop at providing exporter funds. Support should be extended to offering advice on how to target particular overseas markets, without falling into common traps – such as confusing overseas trade legislations and the risks that arise when trading in a foreign currency, such as rate fluctuations.

Bank lending

James Pattison, CEO of Startup Direct, which provides funding and mentoring to entrepreneurs across the UK, said: “The funding gap left by the banks has largely been filled by the rapid growth of crowd funding and peer to peer lending, while total bank lending to small firms has continued to shrink this year despite the economic recovery.

“The Chancellor’s new package of measures to reopen more tradition borrowing avenues by boosting bank lending will be music to the ears of SMEs across the country who still cite cashflow as one of their primary concerns. The Government recognises that small businesses are the engine of the UK economy and it’s only right that the focus is on supporting their growth and expansion.”

Inheritance Tax

Lynne Rowland, personal tax partner with accountants Kingston Smith said: “Although any relieving measures on inheritance tax are welcome it is disappointing that the nil rate band has not been raised to £1 million for couples,”

This was posted in Bdaily's Members' News section by Ellen Forster .