Latest Updates From Surrey Chambers CEO – 30th October 2024
30th October 2024
Budget and Chamber asks
This week promises to be a significant one in the world of business with the government announcing its plans to get the economy going again. We have been calling on the Chancellor to focus on building an economy that attracts investment, nurtures and sustains workplace talent and delivers world class innovation. Despite the much-discussed £22 billion public funding shortfall, we are in a period of more stable inflation and lower interest rates than we have seen over recent years. These are two of the pivotal factors that should contribute to the stability that businesses and investors need for ongoing confidence. Yet, firms currently face one of the heaviest collective tax burdens in history, choking off scope for planning and investment. At time of going to press we are hoping for:
- An extension to the business rates relief for property intensive retailers and hospitality venues currently only available until the ‘cliff edge’ of April 2025.
- A reassurance that the full-expensing system of capital allowances for investment in plant, machinery and IT will remain in place.
- We welcome the government’s pledge to cap the headline rate of Corporation Tax at 25% for the rest of this parliament, but other much-trailed prospective tax rises, for example on Capital Gains Tax (CGT), need to be carefully balanced with the need to maintain confidence for investment.
- A stable, coherent national skills strategy that reflects the work under way by business-led LSIPs (Local Skills Improvement Plans) such as in the Enterprise M3 area of Surrey and North/Mid Hampshire and across the country. A long-term national partnership on skills involving government, business and education providers will support recruitment and retention for all employers whether they are in the business, charity or public sectors.
Health and Wellbeing
With sickness and ill-health at such high levels, they are significantly impacting the UK’s economic performance. We are hoping there will be some actions taken to help employers to support their team’s health. The kind of actions could be:
- All occupational health, cash plans and medical insurance to become a non-taxable benefit in kind for employees.
- A cut in the Insurance Premium Tax to encourage business take up of health insurance for employees.
Making sensible tax reforms would make it easier for workers to access healthcare and for employers to provide it. It would help ensure people don’t have to leave the workforce unnecessarily due to ill health and increase UK productivity.
Closer to home
We should never underestimate the power of networking, and we are finding that businesses are really valuing the events we deliver, including a pure networking event at Wine and Earth which will be attended by nearly 80 delegates. Another key set of events is our Golf society, which runs every month at outstanding Golf Clubs in the county, allowing businesspeople to network in a relaxed if sometimes competitive way. It is the variety on offer at the chamber that makes us the go to place for growing your business.