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Birmingham Post
Birmingham Post
Business
Tamlyn Jones

West Midlands business leaders outline wishlist ahead of Autumn Budget

Business leaders in the West Midlands have outlined their wishes from the Chancellor's Autumn Budget.

Rishi Sunak has already said that areas such as public sector pay and post-16 skills and education will be addressed in the statement set to be delivered tomorrow lunch time.

Here are some of the other things which West Midlands business leaders feel should be front and centre of the Chancellor's statement.

Reducing the cost of doing business, aiding firms on their net zero journey and committing to HS2 in its entirety should be at the forefront of the Chancellor's Autumn Budget, according to Greater Birmingham Chambers of Commerce.

The chamber is calling on the Chancellor to ensure that the 'Winter Plan' is expanded to include a reassuring commitment to additional financial support for SMEs if additional or new covid-19 related restrictions are introduced.

It also wants a freeze on all policy measures that increase business costs for the next three years with specific reference to capital gains tax or reductions in pension relief alongside a fundamental overhaul of the business rates system to include more frequent valuations.

Chamber chief executive Henrietta Brealey said: "There's plenty of positive news so far in the leaked budget announcements but more difficult decisions are expected.

"The Chancellor's commitments to improving local transport networks, investing in skills and retraining and expanding the availability of housing are very welcome.

"We would urge the Chancellor to continue to demonstrate his commitment to restoring business prosperity by not only reducing the cost of doing business but also making it easier for firms to invest in their people and embark on their own net zero journey and commit to the full HS2 network."

Redditch accountancy firm Hayward Wright says businesses and individuals need to prepare for big changes in the Budget, with a tax on wealth through capital gains and inheritance tax one of the areas which could be considered.

Managing director Alistair Hayward-Wright said: "It is looking more and more likely that the upcoming Budget will be packed with new measures that could lead to higher tax bills for both businesses and individuals.

"The Government has said it is committed to balancing the books and so doesn't intend to increase its borrowing significantly.

"With a huge deficit created by the support offered during the pandemic, this means that the burden is likely to fall on taxpayers."

Johnathan Dudley, partner and head of manufacturing at accountancy group Crowe in Birmingham, said he hoped to see the existing Coronavirus Business Interruption Loan Scheme loans made portable to other lenders.

"It's currently limiting further investment to just the companies which banks are more than happy to back. There is a need to foster a more entrepreneurial approach than that," he said.

"Banks should be more actively encouraged to advance Recovery Loan Scheme loans in marginal cases.

"At present, they have little desire or incentive to do so, with a big CBILS and build lending book with a good return, 75 per cent underwritten by the Government, already in place."

Research by financial services firm Grant Thornton says 43 per cent of mid-market businesses in the West Midlands believe the increased tax burden is the top threat to the growth of their business.

Dave Hillan, partner and practice leader in the Midlands, said: "When it comes to tax rises, the level of concern among businesses in the West Midlands is striking.

"With mid-market firms already facing a perfect storm of challenges, not least the current high-profile disruption to supply chains and rising energy prices, additional taxes could well be the straw that breaks the camel's back for many businesses.

"This underlines how important it is for the Chancellor to achieve the right balance in the Autumn Budget in order to restore business confidence in what is an increasingly fragile market."

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