Responding to the Budget presented by Chancellor of the Exchequer, George Osborne, earlier today, Wilfred Mitchell, Federation of Small Businesses NI Policy Chair, said: “There are a number of welcome pro-business elements in this Budget.”
Fuel Freeze: “The Chancellor has responded to FSB’s calls to freeze fuel duty again, which is of particular benefits to businesses in Northern Ireland, many of which have higher road fuel costs due to their rural location or their need to trade with other countries.”
Taxation: “The self-employed will also see a major boost through the scrapping of Class 2 National Insurance contributions, saving each around £145 per year, whilst the new Lifetime ISA for under forty year olds could provide an excellent, flexible savings vehicle for entrepreneurs.”
Mr Mitchell also commended the measures to boost investment, including the reductions in capital gains tax, the extensions in the Entrepreneurs Relief and the alignment of stamp duty on commercial properties with that of residential.
Enterprise Zone: “FSB also welcomes the decision to extend enhanced capital allowances to Coleraine Enterprise Zone. If this works as a pilot to stimulate the local north west economy, the Chancellor should then extend the approach to the whole of Northern Ireland, to enable our businesses to help close the gap that has long existed between our economy and the rest of the UK.”
Business Taxes: Mr Mitchell welcomed the Chancellor’s response to FSB campaigning to leave the smallest businesses permanently out of the rates net.
“The Chancellor has accepted the arguments about non domestic rates being grossly unfair to the smallest businesses and a barrier to growth. His measures only affect England, so we now need to see our local politicians at Stormont responding in a similar way, and looking to make the rates system work better for business.”
Corporation Tax: “The other key business tax that the Chancellor targeted was corporation tax, which he has announced will fall in the UK to 17%. Obviously, this welcome move will reduce the cost to Northern Ireland of devolving the tax and reducing our rate locally to 12.5%, but it will also reduce the competitive advantage that the lower tax rate policy will give us. We must ensure there is no slippage from the announced date and rate, and we would still advocate introducing it here from April 2017 to maximise our advantage.“
