BDO NW Budget comment

Ian Bingham, tax partner at BDO LLP in the North West, said:

“The Chancellor shared OBR expectations that the UK’s economy will recover more quickly, with a forecast for the economy to return to its pre-Covid level at the turn of the year – earlier than they thought in the Spring Statement. As a result, this Budget included several spending announcements.

“However, there are many businesses in sectors and regions disproportionately impacted in the past 20 months that are not expecting their own recovery until further ahead of that date. Our most recent Rethinking the Economy survey found that 35% of companies in the region predict it will take up to another 12 months to return to pre-Covid-19 revenues, so targeted support is still needed to deliver a sustainable and more “levelled-up” recovery.

“There were some positive announcements around skills and talent with investment, which will be welcome news for many businesses struggling with skills shortages and finding that this is the greatest barrier to growth. But, accessibility will be key to the success of the “skills revolution”. This includes ensuring 16–19-year-olds from all backgrounds and regions are able to access the opportunities and that businesses of all sizes and from all regions are then able to easily access this talent pool.

“Businesses consistently tell us their biggest ask of the Chancellor is a simpler tax system and for some industries that was delivered today with the alcohol duty system set to be simplified and altered, new small producer relief for craft breweries, and draft relief to support pubs. This is a positive result for a sector which has faced ongoing challenges over the past 20 months.

“Overall, the statement included high levels of spending and investment, alongside lots of cuts and incentives on taxes and duties. But before everyone celebrates with a sparkling wine – which we’re set to pay less duty on –we’ll need to look at the detail to understand how everything is being paid for.”