👍 Things we like
Permanent increase to the Annual Investment Allowance
of £1m: This is a major POLICY WIN
for Make UK, providing much-needed certainty businesses have been seeking for the past two years, particularly for SMEs who will now be able to make long-term plans to invest in critical areas of their business, from automation to improving energy efficiency and self-generation. However, more work can be done to make the UK capital allowance regime even more attractive for domestic and international businesses alike.
National Insurance Contributions
increase cancelled from 6 November onwards: Another POICY WIN
for Make UK. This was always a tax on jobs which we had called illogical and ill-timed, and it seems like common sense has prevailed. The reversal will now see more cash in pockets for businesses and consumers.
is frozen: We were due to see Corporation Tax increase to 25% from April next year but today the Chancellor announced plans to scrap that idea and instead keep it at 19% to make the UK a more competitive place to invest in. It’s good news but we would have preferred to see the Chancellor focus more on pre-profit taxes and hint at a more radical reform of the business rates regime which has been hampering business growth for some time.
⚖ Jury is out
New Investment Zones
: They’re not Freeports, they’re not Enterprise Zones, they’re Investment Zone. On the one hand, you’ve got areas of opportunity for businesses that would benefit from business rates relief and enhanced capital allowances. On the other hand, it could run the risk of moving existing activity to other areas and worst case creating extra internal trade barriers.