Prime Minister Theresa May has said austerity is ending, now Chancellor Philip Hammond is expected to deliver it in the autumn Budget.
Relief from Brexit blues
Many UK businesses are already going through tough times battling Brexit uncertainty and a shaky economy. But they are hoping that Monday’s Budget will bring some relief. One prominent think tank, the Resolution Foundation suggesting that Mr Hammond would need to find an extra £31 billion by 2022/23 to ensure no departmental cuts are made, work allowances are strengthened and borrowing is further reduced.
Businesses want practical help
Businesses around the country are all hoping they will also benefit from the end of austerity and will receive practical help from Monday’s Budget.
Improvements in skills and training
The UK’s five big business groups – the British Chambers of Commerce, the Confederation of British Industry, the EEF manufacturing lobby, the Institute of Directors and the Federation of Small Businesses – all want improvements to the Apprenticeship Levy. This is designed to help with skills and training needs, by being spent on apprentices, but only 14% of businesses say it works well, according to Institute of Directors figures.
More investment required
There is also strong support for more business and infrastructure investment and changes to business rates. More support and clarity is demanded over Brexit and particularly with attracting skilled workers.
What are the views around the country?
However, as well as ending austerity, companies around the country have different priorities depending on the state of the industry and regional needs. Halo Financial provides a snapshot from around the UK of what businesses want from the Budget:
Priority: Cut Stamp Duty
The high rates of tax – including the newly-announced additional Stamp Duty Land Tax for foreign buyers – is dissuading buyers and slowing up the market, says Carol Peett, managing director of West Wales Property Finders.
She calls on the Chancellor to cut Stamp Duty and free up the property chain.
High tax rates stop older people from downsizing and selling their homes to the next generation who find it costly to move up the property ladder. This has a knock-on effect right down the chain to first time buyers.
“Pensioners are rattling around in houses far too large for their needs and which cost more than they can afford to run, while younger families, for whom the properties would be ideally suited, cannot raise the large Stamp Duty tax on top of the purchase price.
“Older people are also deterred from selling and moving into smaller properties because of the prohibitive cost of Stamp Duty on any property they may wish to purchase should they be able to sell their homes. This creates a vicious circle as the lack of properties suitable for growing families on the market pushes prices of this type of property up, meaning more Stamp Duty is payable on them.”
Additionally, the Treasury currently faces a £1 billion drop in tax raised from property sales this year. This is clear evidence that the hike, imposed by former Chancellor George Osborne, has backfired badly.
In Wales, where the Welsh Labour Government imposed huge increases in the amount payable in Land Transaction Tax, their version of Stamp Duty, on properties over £400,000 in April this year. That, too, shows signs of backfiring, with a severely depleted housing stock for growing families.
https://www.halofinancial.com/news/brexit/2018/october/a-budget-to-end-austerity – 29th October 2018
If you are looking for a property in Pembrokeshire, Carmarthenshire, Ceredigion or Gower, give West Wales Property Finders a call on 01834 862816. We can not only find you your dream home but also save you time, stress and often money too. http://www.westwalespropertyfinders.co.uk