GWE Business caution for Chancellor's measures (From Swindon Advertiser)

GWE Business caution for Chancellor's measures

GWE Business West has given a cautious welcome to a number of the measures announced by the Chancellor in his Pre-Budget Report.

However, Nigel Hutchings, GWE Business West's Director of Regional Affairs, was also concerned about other elements of the statement and he felt many businesses would want to see the detail before coming to a final conclusion.

"We have previously been arguing in favour of various measures, some of which have been included in the Chancellor's report.

"For example the changes in the planned increase in business rates paid on empty properties and the staged payments of all business taxes.

"We are also pleased to hear there is to be a delay in the implementation of the 1% increase in corporation tax for small companies and that temporary funding will be available to help small businesses get over short term cash flow problems.

"We also welcome the bringing forward of large capital projects and various plans to improve the environment."

"The reduction over the next 13 months in VAT to 15% is welcome but it likely to have a relatively small effect when compared to the size of discounts already being offered and there are also concerns about the way in which it will be implemented.

"It was disappointing to see a rise announced on fuel duty to offset savings in VAT because that will keep the cost of distributing goods at a high level.

"We are also concerned about the planned increase in National Insurance contributions of half a per cent because that is likely to come into play at the very moment our economy is predicted to be coming out of recession and may prove to be an application of the brake at the very moment we should be pressing the accelerator."

GWE Business West Ltd is a leading membership and economic development organisation delivering an extensive range of services to businesses.

Based in Swindon and Bristol, it is a powerful voice for business and plays a major role in shaping and supporting economic growth and success.