“A lifeline to struggling businesses” says Chambers Wales, South East, South West and Mid
On today’s mini-budget, Paul Slevin, Executive Chair, Chambers Wales South East, South West and Mid, said: “We are pleased to see a number of measures announced in today’s mini budget that will no doubt provide a lifeline to struggling businesses across Wales and the rest of the UK.
“We’re particularly pleased to see the planned 1.25% rise in National Insurance reversed. This change will not only benefits workers who are set to see an increase in their take home pay but is vital for businesses who will now save on average almost £10,000. This saving cannot be underestimated in improving businesses’ ability and confidence to invest and grow.
“The repealing of the IR35 reform that we saw introduced in early 2021 is not be underestimated and is helpful for both businesses and contractors. While there is likely to be legislation remaining its simplification will go some way in bringing the economically inactive back to work and needs to be reversed as soon as possible.
“Welsh businesses will also be pleased to see that the scheduled increase in the main rate of corporation tax is being reversed and will remain at 19%. The original planned increase would have no doubt been a great source of worry for many, who are already facing rising costs across the board.
“The cost of living and cost of doing business crises are intrinsically linked, and so people will be reassured to see the basic rate of personal income tax reduced. Hopefully these changes will free up some much needed income for workers and provide a boost to the Welsh and UK economies.
“We also look forward to finding out more about the Government’s plans for 40 new investment zones in England and what this means for devolved nations. There is a growing concern that those including Wales are in danger of being left behind when investment announcements are made in Westminster, similar to what we have seen in freeport discussions.
“Whilst we do have concerns around this week’s rise in interest rates, in recent days we have also seen help announced for businesses struggling with rising energy costs. The stimulus packages will go some way to helping the UK grow its way out of a recession, if it does not cause contention with attempts to subdue inflationary pressure, especially in supply chain and energy.
“It is our hope that the measures announced this week, will give businesses confidence in the future.”