With one week to go until the Autumn Budget, and the anticipated publication of the Government’s business tax roadmap, companies in the North West are calling for more certainty on taxes to help stimulate growth within the region.
According to the latest research from accountancy and business advisory firm, BDO LLP, two-fifths of businesses in the North West want assurances from the Chancellor that full expensing capital allowances will remain for the life of this Parliament.
Skills are also high on the agenda, as regional businesses continue to tackle workforce pressures, with one in six urging the Treasury to replace the apprenticeship levy with a more simple growth and skills levy. Nearly a quarter stated that a long-term partnership between the education system, local government and businesses – one that enables young people to connect with local employment and training – is a policy that would have a positive impact on their business over the next six to 12 months.
BDO’s bi-monthly Economic Engine survey of 500 mid-sized businesses, also revealed that regulatory changes to improve access to capital or simplify the listing process for the London Stock Exchange would also be beneficial for more than a third of companies
Angela Cross, regional managing partner at BDO in the North West, commented: “What many North 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.
“Our own manifesto for mid-sized businesses outlines measures to enable these businesses to succeed. 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.”
She added: “Mid-sized businesses in the North West are the driving force of the regional economy, contributing £150bn in revenue and employing more than 800,000 people. It’s absolutely essential that they are encouraged and incentivised to grow through policy and taxation that supports their strategic ambitions.”
Looking ahead to future growth ambitions, the survey reveals that nearly a quarter of North West businesses intend to prioritise investment in research and development over the next six to nine months, in a bid to achieve their growth targets, with one in five planning to invest in new technologies, such as artificial intelligence (AI) and automation.
BDO’s survey showed that the top workplace issues affecting businesses in the region include: changes to policy or regulation, which are creating uncertainty around skilled worker visas and employment contracts and difficulty recruiting staff due to wage demands.
Cross 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.”
