Commenting on today’s Budget announcement Dave Munton, Partner and Head of Markets and Clients at Grant Thornton UK LLP, said:
“This Budget is cause for some optimism from a business perspective – with extensions to covid-19 support measures against a backdrop of improving economic forecasts. In unleashing significant additional firepower to help businesses get through the pandemic, the Chancellor has rightly deferred action to reduce debt levels until business, and the wider economy, is on a stronger footing.
“The situation remains precarious for many, with various sectors unable to trade and the route out of lockdown still a marathon. In recognition of this, support measures have been extended and tailored based on level of need and plans to taper out this support are welcome. This will provide security for many who faced a cliff edge of support on the original deadlines.
“Businesses will also be encouraged to see the Chancellor prioritising growth and incentivising investment with pro-business measures such as tax breaks to unlock £20 billion worth of business investment and the deduction of investment costs from tax bills. Incentives for investment in skills, research and development and the green economy will be welcomed, and businesses will be keen to see the detail to understand how they can benefit.
“Everyone understands that the level of support offered by the Government has been unprecedented and that taxes will have to rise in response. The Chancellor has signalled major moves on Corporation Tax today and we will be closely watching for more details on tax policy through the upcoming consultations.”