Commenting on Rachel Reeves’ Autumn Budget, Andrew Harding, FCMA, CGMA, Chief Executive – Management Accounting at AICPA & CIMA, said:
“In today’s Budget, the Chancellor announced measures such as the corporate tax roadmap, the continuation of R&D tax reliefs, and the maintenance of full capital expensing allowance, which will help provide UK businesses with much-needed stability and certainty. However, she missed an opportunity to include second-hand equipment in the full capital expensing allowance, a measure that could significantly reduce costs for businesses investing in used machinery and equipment.
“In addition, we are pleased to see measures designed to boost productivity in both the public and the private sectors, including setting a 2% productivity target for government departments, and ending the freeze on income tax thresholds in 2028/29. This will be key to reducing the harm caused by fiscal drag to taxpayers and ensuring that income growth isn’t eroded by inflation. We also welcome the Chancellor’s announcement that the capital spending budget will be spread over five years to boost public investment. To maximise effectiveness, the government must ensure that it has a clear and well-defined structure of responsibility and accountability for strategic decision-making and delivery in place.”
“However, we are concerned about the increase in employers’ National Insurance and how this will affect businesses’ ability to grow and expand. This announcement is particularly worrying for SMEs across the country, and while we understand some measures will be put in place to mitigate its impact on SMEs, we are eager to see how these will be implemented in practice to ensure they don’t hinder growth.”