Autumn Statement predictions

Bevan & BucklandOn 29 November the Chancellor will deliver his Autumn Statement in a year where our economy is in desperate need of a growth spurt. What can Welsh Businesses expect from the Autumn Statement, here our Tax Partner Jeannette McLellan looks at what the business groups and their members are calling for…

  • Credit easing

The Chancellor will certainly announce ‘credit easing’ later this month. The formalities haven’t been agreed yet, but suggestions are that the public sector will buy bonds issued by companies as an attempt to cut the cost of credit for companies, and boost the supply of credit.

  • Targeted VAT cuts and NIC holidays

The Federation of Small Businesses is calling for the Government to introduce a targeted VAT cut to encourage people to spend in specific areas. They also want to see an extension of the NICs holiday currently available to qualifying new businesses, extended to existing businesses with fewer than four employees and that employ up to three more staff.

  • Banking reform

How will the Chancellor use this Autumn Statement to respond to the Independent Commission on Banking’s Final Report and what steps will he take to boost competition within the banking sector

  • Capital allowances

Many business groups have asked for the introduction of 100% first year capital allowances for a time limited period of two years.

  • Corporation tax

The main corporation tax rate was reduced to 26% in April 2011 in this year’s Budget, and will reduce by a further 1% each year to 23% in 2014. The Institute of Directors has called for the Chancellor to cut corporation tax to 15 % by 2020 to encourage business growth.

  • Growth Review

The second phase of the Growth Review is due to be announced alongside the Autumn Statement. However, business groups have called for it to be reformed, claiming it is not currently targeting the most important drivers of growth. If it goes ahead as planned, the second phase will focus on skills, infrastructure, logistics, medium-sized businesses and the rural economy.

Exactly what the Chancellor plans remains to be seen, but we will have a full report of the Autumn Statement from 30 November available online here. We will also be publishing excerpts on our blog and Twitter account.


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