Invest in broadband and cut tax red tape, say UK businesses ahead of budget statement

The survey asked over 900 businesses what they would like to see in the Chancellor’s Autumn Statement on 25th November.

The key findings reveal:

Digital infrastructure v physical infrastructure: 40 per cent of firms want to see the Government invest in universal superfast broadband compared to only 16 per cent who want improved rail links

Indifferent to city devolution: Currently 44 per cent of businesses are indifferent about increased powers for cities although 30 per cent see it as having a positive impact whilst 26 per cent believe it will have no impact.

Wary of the Apprenticeship levy: Nearly 60 per cent of businesses do not agree that the proposed Apprenticeship levy is the best way to make large employers invest in skills

Cutting tax red tape: 40 per cent of businesses surveyed say this would be the most likely tax change that would enable firms to invest in their business

Ahead of his Autumn Statement, BDO has called for George Osborne to concentrate on three broad areas to help move the UK economy to a more sustainable and balanced footing.

The three areas where the Chancellor should focus are:

Make the most of the UK mid-market (firms with a revenue of between £10m-£300m)

Help UK businesses grow internationally and attract inward investment

Create the regional and sector powerhouses that will fuel our economy

Martin Bell, tax partner at BDO, said: “The Government’s ambition to rebalance the UK economy in order to be less reliant on any one sector or region is the right one. The Chancellor, however, is overlooking the vital importance of mid-sized businesses in his plans to get the economy on a more sustainable footing. The UK mid-market is widely spread both by geography and sector, they are major exporters and are growing fast. The UK mid-market must be at the heart of the Chancellor’s economic plans.

“I expect the Autumn Statement will be putting more meat on the bones of the policies that the Chancellor announced in his summer Budget. We can expect more detail on tax transparency, business rates, the devolving of power to cities and the Apprenticeship Levy. The Scottish budget on December 16th will set the scene for the introduction of Scottish Income Tax from April 2016.”