Commenting on today’s Autumn Statement, Jonathan Riley, Head of Tax at Grant Thornton UK LLP, said:
“The Chancellor’s moves to ensure a competitive tax environment for business are a step in the right direction, particularly for mid-sized businesses (MSBs). Grant Thornton research in November showed that MSBs consider employment costs a barrier to growth and job creation, with 45% of MSBs identifying a reduction in National Insurance (NI) contributions as the number one priority for the Autumn Statement. They will welcome his move to remove NI contributions on 1.5 million jobs for the under-21s as a spur to growth.
“The Chancellor made it clear that if business tax is too high, exports are too low. MSBs export growth has outperformed small and big business as the UK has pulled out of recession. In 2012 MSB exports grew by 3.8% despite the recession in the UK’s main export market, the EU. Firms will welcome the Chancellor’s move to strengthen export finance capacity up to £50 billion to help businesses tap into emerging markets. MSBs are increasingly looking beyond the US and EU to other markets, including China, and the Chancellor’s focus here today is encouraging.”
