Member Article

Budget 2015: The hopes and expectations of North East businesses

Ahead of George Osborne delivering the Budget later today, here are some of the views gathered from businesses across the North East.

Rob Charlton CEO of design and technology business Space Architecture:

“This budget will be a huge non-event. There are a few giveaways such as a reduction in a pint of beer but this will be very much a budget for the man in the street – it may include reduction in fuel duty or cigarettes. From a tax perspective there will be no change and little change in any matters for business.”

Alastair Wilson, Tax Partner at Tait Walker Chartered Accountants:

“Extension of the Annual Investment Allowance to encourage investment in plant and machinery for the manufacturing sector – an area Tait Walker works closely with through its North East client base.

“We’ll also be looking for a reduction in business rates, in particular for empty property, relief from employers National Insurance for “new” jobs for example in the technology sector and better use of Enterprise Zones locally to create genuine hotspots of SME growth – for instance a “tech sector” Enterprise Zone.

“Localised reductions in corporation tax for specific sectors would also be welcome for example a reduction in corporation tax in the North East for companies in the offshore supply chain.

“Finally, I’d like to see a reduction in employment tax reporting red tape and a re-introduction of tax relief for corporates for investment in other corporates.”

Ian Malcolm, MD of ElringKlinger (GB), Teesside-based automotive parts manufacturer:

“I’ll be looking for the Government to deliver what they said they would at the beginning of this Parliament and merge PAYE and National Insurance into a single tax. This is alongside greater support for manufacturing companies in the North East and skills support for engineering and manufacturing sectors, and infrastructure support and improved access to funding.”

Kathryn Taylor, managing partner of Gordon Brown Law Firm:

“As a firm we operate one of the biggest residential conveyancing departments in the North East, so I’ll be looking out for changes to and possible issues impacting the property sector.

“Hopefully if there are any changes in this area then they won’t be anything too dramatic, unlike the Chancellor’s Autumn Statement, which stated that the rules on stamp duty were being overhauled, catching most residential conveyancing solicitors I know on the hop.

“Within minutes of the announcement being made clients started calling our firm seeking guidance and calculations of their new stamp duty amounts. Unfortunately, none of us had any warning that the rules were changing and being a busy volume firm, we had numerous clients in the middle of transactions, all of them wanting to know ‘how does it affect me?’

“So if I could have one ‘wish’ it would be, if there are further changes in stamp duty or indeed anything else property-related, “can we have a little more warning this time please?!””

Richard Sice, Director of Corporate Development at Fast Track China:

“If the Chancellor can provide measures to encourage greater exporting, it will help many companies to open up new avenues for growth. Markets, such as China, offer great potential, which can be unlocked with support for businesses to take UK innovation, products and service to the rest of the world.”

Peter Davison, Managing Director of Billingham-based RPD Builders, said:

“As a member of the SME community, I would like to see a Budget that has measures to help SMEs invest, innovate and grow and therefore create jobs and opportunities.

“The Chancellor’s 2014 Budget put SMEs at the heart of economic growth and I would like to see more of the same. The Chancellor should introduce more funding for growth for SMEs across all sectors to propel future UK economic development.”

Warren Portues, Co-owner of Stockton-based North Eastern 4x4:

“As a small business that services and repairs vehicles and employs five full-time members of staff and three apprentices, I would like to see assurances in the Budget that the Government has no plans to introduce new taxes on diesel powered engines. Such an introduction could have a detrimental effect on the day-to-day running costs of many businesses.”

George Rafferty, Chief Executive of NOF Energy:

“The industry has made strong representations to the Treasury regarding the fiscal regime in the UK oil & gas sector, which we support, and we hope they are heard. Most significantly there is the need for investment allowances that encourages exploration.

“Exploration is crucial to securing the future of operations in the UK North Sea as it is the catalyst for the entire industry from the recovery of resources through to programmes of decommissioning, all of which involve the support of a technology-led supply chain.”

“The importance of the energy industry to the UK economy is multi-faceted and it’s essential for the Chancellor to continue to recognise this in his Budget.

“In addition to making sure the lights don’t go out, the industry makes considerable contributions to the Treasury. This is both in terms of the tax-take from recovered resources, but also from the several thousand companies in the supply chain, and the tens of thousands of people they employ, that contribute to the economy thanks to their skills, products and services that are delivered in the UK and exported around the world.”

Pamela Petty, managing director of Ebac:

“I’d really like the Chancellor to announce something that would drive demand for British made goods, maybe a tax on imported white goods and textiles or a real financial incentive for manufacturing here at home some of the things we import.

“This country has a proud history of making things, and it is no surprise that the growth we are seeing in the economy is coming at a time when UK manufacturing is on the rise.”

Steve Pugh, Group Business Development Manager at Nortech Group:

“There is urgent need for regulatory and fiscal reform to restore the international competitiveness of the UK oil and gas industry.

“The international market is being driven by ever increasing production from the Middle East and reduced demand from the slowing economic growth in developing nations. This is creating the perfect storm.

“Nobody within the industry is looking for hand-outs, but the UK oil and gas industry is suffering disproportionately on the global stage from high costs and a tax burden of between 60 and 80 per cent.

“Any update to the fiscal regime should reflect the current realities. That means strong incentives for both exploration and development with upfront capital allowances. These should also be extended to new companies coming in to manage late life development of the remaining reserves in and around existing fields.”

Mohammed Bashir, founder of Boro Taxis, Teesside largest taxi firm:

“Fuel is the lifeblood of our business and costs, such as fuel, directly affect customers of taxi firms.

“We, along with other companies in the transport sector, would like to see a cut in the disproportionate amount of tax levied on fuel.”

Thanks to everyone who provided views. Due to a high volume of content received we could not include all submissions. What hopes and expectations do you have for the Budget? Comments welcomed below.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →