Bosses in the South West are calling for more certainty on taxes to help stimulate growth ahead of the Autumn Budget.
Nearly a third (30%) of firms in the region want assurances from the chancellor that full expensing capital allowances – a type of tax relief for businesses on equipment, machinery and vehicles – will remain for the life of this parliament.
According to the research by business advisory firm BDO, 27% of businesses would also like to see the Treasury replace the apprenticeship levy with a more simple growth and skills levy.
The news comes ahead of the Budget which will see Rachel Reeves attempt to fill a fiscal black hole of some £40bn. Her address to parliament on October 30 is expected to includes hikes in taxes and cuts in spending as a result.
David Brookes, regional managing partner at BDO in the South West, said: “What many South West businesses would most like to see at next week’s Budget is a clear business tax roadmap which provides predictability and stability to allow them to plan ahead with confidence.”
BDO’s Economic Engine survey of 500 mid-sized businesses found that regulatory changes to improve access to capital and simplifying the listing process for the London Stock Exchange would also be welcomed.
“Our own manifesto for mid-sized businesses outlines measures to enable these businesses to succeed,” said Mr Brookes. “Amongst other asks, it calls for the government to create a cross-party commission on tax to develop pragmatic solutions to key fiscal matters, and ensuring mid-sized businesses have the skills pipeline they need to grow and expand.”
Looking ahead to future growth ambitions, BDO’s survey found that nearly a third of South West businesses (30%) intend to prioritise exporting in the next six to nine months. Nearly a quarter (23%) are also planning to invest in research and development, such as new technologies.
But firms also indicated ongoing workplace issues such as changes to regulation, which is creating uncertainty around skilled worker visas and employment contracts; candidates wanting to work remotely more frequently than their current models support; and difficulty finding the right people for leadership roles.
Mr Brookes added: “It’s encouraging to see that innovation remains at the core of how businesses intend to reach their growth potential. However, there are still a number of notable challenges at play, including the enduring issue of recruitment and retention, which need to be addressed to allow these businesses to reach their full potential.”