Chris Watson, Tax Director at top 20 Accountancy firm, Xeinadin Group, shares his predictions for the upcoming Spring Budget on 6th March. Whilst he urges the Chancellor to introduce policies to help alleviate the pressures on SMEs he’s expecting ‘a game of political football where long-term stability is sacrificed for short-term populism.’
With lots of rumours starting to circulate about what Chancellor Hunt might have in his red box come Budget day, Chris Watson, Tax Director at Xeinadin Group comments:
“The Spring Statement is poised to play a pivotal role in the lead-up to the general election widely anticipated to be in May, and considering there wasn’t anything substantial for small businesses in the Autumn Statement, I expect it to be another stick-and-carrot approach – a game of political football where long-term stability is sacrificed for short-term populism. Despite this, I am hopeful this will change in March. The government will see the statement as an opportunity to regain the confidence of voters by decreasing the level of taxation, including stamp duty land tax to incentivise people to move onto the property ladder. However, these measures are rarely considered with longevity in mind and may be reversed – or scrapped entirely – if a new government comes into administration.
“Simplifying tax regulations and improving interactions with HMRC would alleviate the administrative burden on small business owners, freeing them to focus more on growth and less on bureaucracy. Similarly, increasing the ISA allowance for UK investment and putting small businesses at the forefront of considerations around R&D would mark an important step forward. The government needs to forge a closer relationship with small businesses to ensure that 99% of UK businesses are thriving and not simply surviving. “
