Despite being pitched as a Budget for long-term growth, there was very little for business, according to Paul Falvey, partner at national accountants BDO in the South West.
Paul, pictured, said the Chancellor was under pressure to deliver tax cuts and while this wasn’t forthcoming for businesses – with some hoping there would be a reduction to Corporation Tax signposted – taxpayers would welcome the National Insurance cuts.
“Employers will welcome the measures announced today around lifting the child benefit threshold to £60,000 as it will help employees,” he added.
“For smaller businesses, lifting the threshold for VAT registration to £90,000 will be popular, despite being limited.
“The proposed extension of full expensing to leased assets may also encourage investment by businesses in the region.”
He said it would be interesting to follow the consultation around the ‘British’ ISA, which could bring an additional £5,000 tax-free allowance for individual investors but should also help to stimulate investment in regional growth businesses across the UK.
Rob Chedzoy, tax partner at South West accountancy firm Milsted Langdon, cautioned that Mr Hunt had targeted individuals with tax cuts at the expense of small businesses.
He said the Chancellor had placed a heavy emphasis on relieving the financial burden on families and working individuals following a period of high living costs and inflation. 
The headline tax cut of 2% on employee National Insurance Contributions, set to fall to 8% for employees and 6% for the self-employed from 6 April, formed the basis of this approach.
“A further cut in National Insurance is clearly going to be welcomed by working people,” said Rob, pictured.
“But, as we saw with the Autumn Statement, employers continue to be left behind.
“While a lower rate of National Insurance is great for individuals, there was no such relief for hard pressed employers.”
He said the Chancellor’s leading measures revealed a “person-centred approach to the Budget which reflects the fact that businesses cannot vote.”
Even the most significant measure for SMEs – the announced rise in the threshold at which businesses and sole traders must register to pay VAT from £85,000 to £90,000 – was unlikely to have any benefit for most businesses.
Beyond these changes, Milsted Langdon, which has an office in Bristol, warned that other measures unveiled in the Budget revealed a ‘voter-first’ approach.
Pro-business measures included reliefs for film and TV production, arts and performance – with new tax credits for independent UK films, and the permanent introduction of tax reliefs for touring and non-touring performing arts.
This came in addition to some limited support for the hospitality sector – including another freeze on alcohol duty until February next year.
Reme Holland, a financial planning partner at South West accountancy firm Albert Goodman, ‘cautiously welcomed’ the introduction of the British ISA, which aims to encourage savers to invest in UK assets.
Reme, pictured, said: “Any further increases to the ISA are welcome and I can see the logic of encouraging investment in Britain.
“However, clients should keep in mind the benefits of diversification when considering their approach to investments, the world is a big place.”
Tracey Watts, a tax partner at Albert Goodman, said the increase in VAT registration threshold from £85,000 to £90,000 from 1 April was the first time it had been increased in seven years.
But she added: “It is a shame that Mr Hunt did not take the opportunity to address the cliff edge for businesses once the threshold is reached, but any increase is welcomed”
The VAT move was also welcomed by Owen Burn, VAT director at professional services firm Evelyn Partners in Bristol. 
Owen, pictured, said the current threshold had been in place since 1 April 2017 and with many small businesses facing challenging trading conditions in an environment of rising supplier costs and a dent in consumer confidence, raising it to £90,000 would help many entrepreneurs.
“This tax cut means that many existing businesses will not only be able to carry on trading but it will also help encourage a new generation of entrepreneurs to set up businesses,” he added.
“It is the early stages of setting up a business where entrepreneurs need all the support they can get.
“However, we also need to err on the side of caution in that some businesses may opt to manage turnover to remain under the threshold to avoid a potential 20% rise in prices and the additional administrative and financial burden of filing Making Tax Digital compliant VAT returns.
“It is therefore unclear what level of growth this marginal rise will deliver for small businesses as a whole at or around the threshold.”
Lauren Carlyle, practice lead for accountants Grant Thornton in the South West, said with the economy technically in recession, it was no surprise that the budget included a raft of measures to boost growth and incentivise long-term investment.
“Smaller firms will appreciate the threshold for VAT registration going up from £85,000 to £90,000. At the other end of the scale, funding for clean energy, AI and innovative tech, as well as childcare support to lower job vacancies, will be welcomed by larger firms for whom these are key issues,” she said.
“With the South West renowned for its hospitality sector, it was disappointing not to see any targeted support for pubs, restaurants and nightclubs beyond the freeze in alcohol duty.
“The Chancellor’s permanent cuts in taxation and support for dynamic economies are ambitious, but hopefully will bring positive change to businesses and encourage long-term growth.”
