Business Must have a Strong Local Voice - Somerset Chamber of ...

2013 BudgetBudget 2013 – What might it mean forSomerset businesses?While there is much for business to welcome in theChancellor's budget statement, such as scrapping therise on fuel duty, and putting £3.5bn into helpingbuyers afford new homes, could he have gone furtherto support enterprise and growth, such as scrappingdamaging increases in business rates?With the UK economy at an unprecedented moment inhistory, could the Government be doing more to get theeconomy moving? Many of the Chancellor’s measureswere targeted at larger corporates, and those that willbenefit smaller companies will not take effect until2015, which could be too late for some businesses.Somerset business will in doubt appreciate many of theChancellor's measures, and his personal commitmentto fiscal discipline and support for enterprise, but willwish he had been more radical in the pursuit of growthas he reported that the economy will grow in 2013/14by a paltry 0.6% down from December’s forecast of1.2%.The “Good News” headline stories for businesses are:-Planned fuel duty rise for September 2013 scrapped– saving Somerset hauliers thousands of pounds.The first £2,000 to be taken off all employers'National Insurance bills from April 2015 – takinghundreds of Somerset’s smaller employers out ofemployers NI contributions altogether.Corporation Tax to drop to 20% in April 2014 – a hitwith limited companies, but no effect on the smallersole trader or partnership. Promise of extra £3bn per year for infrastructure –but what might it be spent on in Somerset and theSouth West?Single Pot for local expenditure through LEPs – howmuch, and again, what might it be spent on inSomerset?Limit for the provision of tax free low-interest loansfor employees will be increased from £5,000 to£10,000 from April 2014;Income tax threshold to be raised to £10,000 inApril 2014 (£9,400 in April 2013) – great news foreveryone in employment and self-employment.Beer duty cut by 1p a pint and scrapping of the beerduty escalator making a net saving in 2013 of 4pper pint – great news for the plethora of small microbrewers in Somerset and their consumers!Shared Equity Scheme of up to 20% for new buildhousing – which should also help the house buildingsector“There is much for business to commend inthe Chancellor's statement, from a widerremit for the Bank of England, to measureson fuel duty, home ownership, andemployment. However, many in business willfeel that the government could have goneeven further to support enterprise andgrowth” - John Longworth, Director General of theBritish Chamber of CommerceWhat does this mean to your Somersetbusiness?We welcome your thoughts on the recent budget, let usknow how this will effect your Somerset business.Let us know, email Rupert Cox onrupertcox@somerset-chamber.co.uk4