Ahead of the Autumn Budget 2024, businesses in the West Country stress the need for clarity in tax regulations.
A recent survey highlights critical areas where firms seek governmental assurance, aiming to support economic vitality.
As the Autumn Budget 2024 draws near, businesses across the West Country are urging for certainty regarding tax policies from the government. A significant portion, approximately 30%, of regional firms stress the importance of maintaining full expensing of capital allowances, which provides crucial tax relief on business investments like equipment and machinery. Such measures are deemed vital for the continuity of these businesses and for stimulating economic growth.
A considerable number of businesses, about 27%, are hoping for the replacement of the apprenticeship levy with a more straightforward growth and skills levy. Many consider this change necessary to foster development and improve the skill levels of the workforce. The current levy is often viewed as complicated and not fully effective in addressing the skill gaps within industries, particularly those that are rapidly evolving.
Chancellor Rachel Reeves is set to address a fiscal deficit of approximately £40 billion. Her forthcoming speech is expected to outline measures that include potential tax increases and spending cuts. Such fiscal adjustments are crucial to stabilising the economic landscape, though they inevitably provoke concern among business leaders who seek a balanced approach that will not stifle growth. The budget will be closely scrutinised for its impact on both businesses and individuals.
Research indicates that about 30% of businesses in the region intend to focus on enhancing their export activities in the near term. Addressing innovation challenges, about 23% are prioritising investments in research and development to integrate new technologies. Such investments are essential for maintaining competitive advantage and driving future business success. However, regulatory hurdles continue to pose significant challenges for businesses aiming to innovate and expand.
Firms are facing ongoing issues related to workforce dynamics, including regulatory changes affecting skilled worker visas and employment contracts. Many candidates are increasingly seeking remote working opportunities, which do not always align with current business models. There is also a recognised difficulty in sourcing and retaining leadership talent. These issues highlight the need for adaptable workforce strategies to tackle emerging trends.
Business advisory firm BDO’s survey underscored the demand for a clear business tax roadmap. Such clarity would enable businesses to strategize and invest with confidence. David Brookes from BDO emphasised the need for a pragmatic approach to taxation that includes establishing a cross-party commission focused on resolving key fiscal issues. Such initiatives are seen as necessary to support the long-term growth of mid-sized businesses.
Looking ahead, firms in the South West express optimism about their growth prospects. With plans to prioritise exports and invest in innovative technologies, businesses are gearing up for challenging times. They hope for supportive measures from the government to overcome existing hurdles and achieve sustainable growth.
In conclusion, as the Autumn Budget 2024 looms, businesses in the West Country are fervently advocating for tax clarity and support.
These measures are pivotal in fostering a resilient economy, ready to tackle future challenges.
