Budget 2018: Reactions
29th October 2018
Business rates relief for small retail businesses cut by a third from 2019 to 2021
Mike Cherry, national chairman at the Federation of Small Businesses, said:
"Small businesses on our high streets that cannot get small business rate relief will be delighted with the significant discount for the next 2 years.
"On average this will help these businesses to the tune of almost £2,000 each, but potentially up to around £16,000 off small businesses facing the biggest bills."
Annual investment allowance increased to £1m
Adam Marshall, director-general of the British Chambers of Commerce, said:
"We are delighted that the Chancellor has listened to the voice of Chambers of Commerce and has boosted the annual investment allowance to £1 million.
"This will be a huge shot in the arm for businesses across the country, giving many thousands of firms renewed confidence to invest and grow."
Small firms' co-investment to apprenticeship training decreased to 5%
Stephen Martin, director-general of the Institute of Directors, said:
"Low take-up of apprentices by small businesses has been a quandary for the Government since the levy was introduced and employers will cheer the decision to reduce the co-investment rate for small firms.
"However, technological and demographic changes will shift the goalposts for employers more than ever in the coming years, and the race to build genuine flexibility into the UK skills framework is far from won."
Personal allowance to rise to £12,500, and higher-rate threshold to £50,000, in April 2019
Steven Cameron, pensions director at Aegon said:
"Increasing the higher rate tax threshold to £50,000 from next April will mean fewer people are higher-rate tax payers with some moving to be basic-rate tax payers.
"While few will object to this, it does affect pension saving as individuals receive tax relief, or a government top-up, based on their highest marginal income tax rate of 20%, 40% or 45%.
"For those moving down into the basic rate tax bracket, their government top-up is halved meaning less may be going into their pension."
Stamp duty relief extended to first-time buyers of shared properties up to £500,000
Helen Morrissey, spokesperson at Royal London, said:
"While the extension of this stamp duty relief will help first time buyers to get a step on the housing ladder, we would argue that more can be done to make the housing market more liquid.
"We would urge the government to look at reliefs for those further up the housing ladder if we really want to free up the housing market."
An in-depth Budget report will appear on our website on Tuesday 30 October 2018.