General Election 2017: Business leaders of Yorkshire give their final views

When Prime Minister Theresa May called for a sudden General Election back in April, claiming that “the country is coming together but Westminster is not,” many believed that this short, seven-week campaign would result in a resounding victory for the Conservative party.

However, as millions of people are set to cast their vote on Thursday, June 8th, the future Government of our nation doesn’t seem to be so clear-cut. Could Labour actually manage to pull off a shock result?

As the gap in the polls between the Conservative and Labour parties narrows on a daily basis, Bdaily has compiled a roundup of thoughts from business people throughout Yorkshire on the impending election.

Jillian Thomas, MD of Future Life Wealth Management, and former president of Sheffield Chamber of Commerce and Industry

It’s been fascinating to watch the debates surrounding this election. Politicians have argued over the cost of social care, police officers and leaving the European Union.

One thing we know is that the country is not awash with money and what we do have we need to spend wisely. As a financial planner I know how important it is to plan for the future; to make sure that you are not left struggling to buy food, keep warm or keep a roof over your head in your retirement.

But there is one section of the population that doesn’t need to worry so much: public sector workers on final salary or career average earning pension schemes.

The National Audit Office says the public sector pensions’ liability is equivalent to about £55,000 per household. Given this enormous debt, why aren’t politicians discussing the viability of these types of pension schemes?

When we are cutting hospital beds, cancer drugs, bobbies on the beat and investment in infrastructure, and the state pension age is going up and up, how can we continue to fund inflation-proofed public sector pensions? If the public sector were a private company, the directors would be negligent to the shareholders because the figures simply don’t add up.

Elected politicians are effectively the UK PLC’s shareholders. So where is the debate? Where is the first politician bold enough to stand up and state that the current model is bust?

Wherever they are, whoever they are, and whichever party – they will get my vote.

Robyn Peat, managing partner at land, property and business consultancy, George F. White

One of the key points across both manifestos that stands out to me, given the sector we work in and the clients we work for, is the land tax that Labour is proposing.

If Corbyn wins the election, he plans to look at proposals for a Land Value Tax (LVT) as a possible replacement for council tax and business rates. Land value taxes will be paid by landowners on the rental value of their land.

In other words, homeowners will face a charge based on land value rather than house prices. This so-called garden tax will see an average home being charged £3,837 - more than three times the £1,185 council tax bill they currently pay. Add to this the changes in inheritance tax and the risk of rising interest rates, homeowners are likely to face huge tax increases under a Corbyn led government.

The average mortgage would rise by £1,386 a year and, if you combine that with the land value tax, this would lead to an average annual bill of £5,000. Labour will also reduce the inheritance tax threshold from £850,000 to only £650,000 - a move which would decrease the amount middle class grandparents and parents can pass on to their children.

Will Taylor, owner and director of Martin & Co Huddersfield

As the owner of a Huddersfield-based estate agency business, my hopes following the General Election would be for a much greater level of regulation right across the industry.

Private lettings agents currently remain largely unregulated and are subject to limited statutory directives - which has facilitated the rise of rogue agents and resulted in consumers being open to exploitation, and the sector as a whole suffering from a poor reputation.

The introduction of better regulation focused on minimum professional standards and effective enforcement will mean that everyone is safer. From a wider economic perspective, the Government needs to be more forgiving to businesses.

The economy is tight for everyone at the current time, but demonstrating more leniency towards businesses from a tax perspective will ensure that employers are able to look after their staff, that they’re given the freedom to grow and prosper, and that local communities reap the benefits from enhanced investment.

There also needs to be a greater focus on smaller towns, such as Huddersfield and Wakefield, and on the development of comprehensive strategies to attract retail and leisure visitors.

There is continual emphasis by Government on larger cities and suburbs – with the £multi-billion HS2 a prime example of attention being placed on access to the capital – but there is a very real need for better, more enhanced services and infrastructure elsewhere in the UK, particularly here in the north.

There are some fantastic opportunities for growth here in Huddersfield in particular, not least now we have a premiership football Club which will help put us on the map. But, in order for us to truly benefit as a region, MPs on a local level need to gain an acute understanding of what our people and business owners on the ground really need.

Penny Marshall, ICE Regional Director for Yorkshire and the Humber

We know that investment in infrastructure can help boost economic growth across the UK by creating jobs, improving connectivity, regenerating areas and communities.

The transport, energy and housing that we all depend on would simply not function without it.

Whoever governs our country after the General Election must place infrastructure investment at the heart of their plans to help stabilise and rebalance our economy.

The construction industry contributes a great deal to the regional economy and the country as a whole, so we need to see an ongoing commitment to the industry after the election.

To deliver the infrastructure we need, the industry requires 87,000 new starters each year to join the 2.6 million already working in construction across the UK, so I would like to see a greater emphasis and focus on the STEM agenda within education.

This will help to inspire youngsters into STEM-related careers and help plug the skills gap.

Richard Whitelock, head of private clients at Yorkshire accountancy firm Garbutt + Elliott

There is a stark contrast between the two main parties in respect of personal taxation, with the Conservative Party retaining its pledge to increase the Personal Allowance to £12,500 and the higher rate threshold to £50,000 by 2020, as well as moving away from the ‘triple lock’ guarantee to not raise Income Tax, National Insurance Contributions (NIC) or VAT.

In scrapping this 2010 election promise, Theresa May has created room for manoeuvre, with the intent to lower tax and ‘simplify’ the system, although there is no indication of widescale reform.

Labour, on the other hand, has guaranteed not to increase Income Tax for those earning below £80,000, which is thought to represent around 95% of taxpayers, and has promised no personal NIC or VAT increases.

This would see the top five per cent contributing more in Income Tax with the introduction of a 45 per cent rate for those with income over £80,000 and the reintroduction of the 50% rate for those with incomes more than £123,000.

Rashmi Dubé, founding director of legal firm, Legatus Law

During this election a spotlight has been placed on SMEs and the contribution that they make to the economic stability of the country.

This is no different to what was recognised during the recession of 2008, where smaller businesses were celebrated for supporting the turnaround and a return to some balance.

As polling day nears, and in the weeks that follow as a new Government is formed, I believe that it is important to ensure that the interests of SMEs are protected and fairly represented.

This means taking the real issues that face smaller business to the House of Commons to be discussed at the highest level.

The combined annual turnover of SMEs in 2016 was 47% of all private sector turnover in the UK. Despite this, the interests of smaller and medium sized businesses are not represented in a way that reflect that position on a national playing field.

It is essential that any party recognises the need to give these businesses the support that they need to flourish and to continue to support the foundations of a stable and growing economy.

In addition, with more women starting their own businesses, SMEs can be used to create a more diverse and equal society.

James Roberts, director of Leeds-based Sanctuary Bathrooms

Although a Conservative victory has looked likely from the outset, a surprise Labour victory wouldn’t impact our business too heavily either.

A Labour victory would mean an increase in the level of corporation tax, which, of course, would cost us more money, while the Tories would further reduce the corporation tax. For a business of our size, a rise wouldn’t have a substantial impact, but I think every business would like to pay less given the choice.

Energy costs for small businesses have spiralled in recent years, and it’s become one of our biggest expenditures. Labour’s promise to introduce controls on rising of energy costs would help safeguard us from further increases, which would reduce operating costs.

The increased minimum wage will hurt some SMEs (although not ours in particular), but raising of wages across the UK improves levels of disposable income. For industries like ours (home and bath wares) that are focused on medium to high value items, this can only be a good thing.

The negotiation of Brexit will be a big issue for all small businesses. We trade internationally, especially to Scandinavian countries, so even a potential drop in the value of the pound could be beneficial in the short term, as we saw a boost in international sales following the initial decision, and the triggering of article 50.

The mystery of a post-Brexit future is unnerving, and we’re unsure that either party knows exactly how to safeguard our international future.

Any changes to zero hour contracts won’t directly impact our business, but I’d be happy to see them go. They mainly benefit large corporations who can employ a large number of flexible factory workers, for example, and are unethical in some cases.

Nick Butler, CEO of Connect Yorkshire

How can the Conservative Party have made such a mess. They have the brains, money and experience but their mistakes already have cost the country dear-and in all likelihood will cost us even more

The Referendum - Firstly the Referendum itself was completely unnecessary. Cameron didn’t have the bottle to stand up to the 50 or so hardline Brexiteers amongst his backbenchers so he backed down

The NI Debacle - Then the Budget sought to impose NI on the self employed; a perfectly reasonable proposal but appallingly handled and they backed down

The Election - How many times did Theresa May say she was not going to have an election until 2020 then changed her mind-a kind of back down

Social Care Payment - And finally (so far) the plan to use people’s houses to fund their social care was dropped within a few days of the manifesto being published. They backed down under pressure again.

Brexit - That’s four times they have backed down when opposition appeared. How do you think they will do in response to a few Neins and Nons!!

From somebody who is a passionate supporter of business, it is a real worry that a hard Brexit will hurt the people that pay the taxes that keep the county going and if their conduct in the last few months is anything to go by we are facing a disaster

The Alternative - In case you are in any doubt after that rant, I won’t be voting for the party that thinks money grows on trees headed by a 1960’s leftie.

Rob Durrant-Walker, head of business tax at Garbutt + Elliott

When it comes to policies that will impact businesses, both major party manifestos are light on policy details, other than Labour’s intention to increase Corporation Tax rates.

The Conservative Party has already outlined plans to reduce the rate to 17% from April 2020 and there has been no change in this intention.

Labour has committed to a 26% main rate, but also the reintroduction of a lower rate for smaller companies which seems to be 21%. As yet, we don’t know at what figure the lower rate would kick in, but on the ‘old’ two-rate system the full rate of Corporation Tax was paid on profits of £1.5m upwards.

The election result will significantly impact the decision to make the tax system digital. A Labour win would see small businesses with a turnover below the £85,000 VAT threshold excluded from quarterly reporting under the Maxing Tax Digital (MTD) initiative.

The current Government’s MTD proposals require unincorporated businesses to make quarterly submissions from April 2018.

While the Budget did introduce a year’s deferral to April 2019 for such smaller businesses, it only outlined an exemption for those businesses with a turnover below £10,000. This means the Labour proposal is likely to curry favour with many smaller businesses, which would suffer both extra costs and administrative burdens in order to meet their MTD obligations.

With Brexit looming the associated tax uncertainties are around ‘where’ to do business. Significant questions remain over VAT and customs duties on European trade, but those questions will remain as no party is in a position to provide answers until more is known about the direction of the exit negotiations.

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