EXCLUSIVE: Mobility leaders welcome financial support packages outlined in 2021 Budget
Mobility leaders are responding positively in the most part to Chancellor Rishi Sunak’s 2021 Budget announcement last week which outlined the key spending and tax plans set to impact businesses and to aid in the UK’s economic recovery.
A number of measures were included to protect jobs and livelihoods as summarised previously by THIIS. These include extensions of the Coronavirus Job Support and Self Employment Income Support schemes to September 2021 and a new “flexi-job” apprenticeship programme in England to enable apprentices to work with a number of employers in one sector
Eligible businesses in the retail sector in England will also benefit from business rates relief. Businesses with profits of £50,000 or less, around 70 per cent of actively trading companies, will continue to be taxed at 19 per cent and a taper above £50,000 will be introduced so that only businesses with profits greater than £250,000 will be taxed at the full 25 per cent rate.
Steve Baker, Chief Executive for BaKare Beds & Hideaway Beds said that he thinks what the chancellor has done with regards taxation is to be applauded.
“The combination of higher corporation tax and super deduction tax should increase UK investment to create the growth we need and it appears like a clever version of trickle down economics at work.
“We will certainly be looking to invest in UK manufacturing and assembly in our recently opened Yorkshire premises as a result.
“I would also expect most accountants to be in touch with business owners explaining how they should spend more in order to be more tax efficient. The devil will be in the detail but looks like win-win to me.”
Barend ter Haar, Director of BES Healthcare, commented that the extension of the furlough scheme through to September was good news for the mobility sector as “this recognises that though a bounce back will be expected, it will take some time to get going.”
He added: “The counter side of the furlough scheme has meant that some people’s jobs have been artificially protected, and as a business we have found that there’s been a shortage of suitably-qualified people coming forward to fill some vacancies that have appeared.
“Other elements of the budget involving higher taxation down the line were going to be inevitable and the support from the Government over the last 12 months has kept many businesses going in the way that the furlough scheme intended. However, again the chancellor has done his best to protect the smaller businesses down the line.
“Elsewhere, there are strong inflationary influences coming into play. The final Brexit withdrawal agreement has been putting up costs, with the increased paperwork and complexity involved with imports and exports, and the knock-on effects of the pandemic has disrupted freight systems causing both increased shipping times and increased costs. The latter has been offset to some extent by some degree of recovery in the value of the Pound against the Dollar and Euro.”
In a budget, it is what is not said that is as important as what is said, says Barend, with social services reform “once more been kicked down the road.”https://thiis.co.uk/exclusive-mobility-leaders-welcome-financial-support-packages-outlined-in-2021-budget/https://i0.wp.com/thiis.co.uk/wp-content/uploads/2021/03/Sunak-2021-Budget_news-lead-960x480-1.jpg?fit=900%2C450&ssl=1https://i0.wp.com/thiis.co.uk/wp-content/uploads/2021/03/Sunak-2021-Budget_news-lead-960x480-1.jpg?resize=150%2C150&ssl=1Government & Local AuthoritiesInvestments & FundingNewsroomSector NewsBarend ter Haar,Budget,Mobility,Rishi Sunak,Steve BakerMobility leaders are responding positively in the most part to Chancellor Rishi Sunak's 2021 Budget announcement last week which outlined the key spending and tax plans set to impact businesses and to aid in the UK’s economic recovery. A number of measures were included to protect jobs and livelihoods as...Liane McIvorLiane McIvorliane@thiis.co.ukAdministratorTHIIS Magazine