Chancellor Jeremy Hunt is set to unveil the Budget in the House of Commons later today.
The announcement comes after Mr Hunt's last financial statement in November as the Government sought to restore the UK’s economic credibility following Kwasi Kwarteng’s disastrous mini-budget.
He set out a series of "difficult" decisions designed to ensure a "shallower" recession for the UK, amid a backdrop of the war in Ukraine, soaring energy bills and the economic turmoil that spelled the end of Liz Truss’s short-lived administration.
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Ahead of the Budget being presented to MPs later today, BusinessLive has rounded up the views, predictions and wish lists from prominent business leaders from across the North West.
You can keep up to date with all the latest news from the Budget via our live blog which you can find on BusinessLive's home page.
Grant Thornton UK LLP
North West practice leader Carl Williams said: "Incentives to support international trade came out as top of the list for the North West and are a must if we want businesses to export and grow into global markets post Brexit, as well as help companies flourish here.
"It’s clear that clarity around future tax policy is an important priority for North West businesses. We know that the super-deduction tax break has helped to boost investment in the mid-market – with most of the businesses who have used it confirming it encouraged them to invest more.
"With the end to the allowance expected in April, there remains a vacuum of uncertainty on whether further support will be available for capital investment.
"Adoption of digital technology was also key for our region. The pandemic accelerated a fundamental shift in how we work, underpinned by a greater reliance on technology and the need to ‘go digital’.
"In many cases, digital transformation led to improved efficiency, new routes to market and greater collaboration. The mid-market now has the potential to build on, and accelerate, its digital journey and we need to ensure the momentum around this agenda does not slow.
"Finally, I’d also like to see a further commitment from the Government for the Levelling Up Fund - too many places in need didn't succeed last time, while an intent to provide targeted and specific grants to support the low-carbon revolution in our region would be a worthy investment in the future."
Bibby Financial Services
Chief executive Jonathan Andrew said: "The UK’s small to medium sized businesses have demonstrated incredible resilience over the past few months and years. Hit with crisis after crisis, SMEs have tenaciously adapted and evolved in any way they can to survive. But the difficult economic conditions have played havoc with their ability and desire to invest in innovation and growth.
"SMEs feel underrated, undervalued, under-supported. So, in this budget, we want to see better support and policy that matches SME’s resilience and ambition.
"First, education is key. Government should help to guide businesses to existing resources and initiatives that are currently underutilised, such as the Bank Referral Scheme. Second, the Government could take more effective steps to alleviate the burden for hardworking small businesses by pulling the levers of central and local taxation, such as business rates, and by extending the pay-back period on covid loans.
"As the Government ‘goes for growth’, those SMEs that are sufficiently equipped to build resilience and invest in their futures will play a vital role in driving the UK’s economic recovery."
Bruntwood
Strategy director Jessica Bowles said: "The last year was undoubtedly tumultuous; from energy price rises driven through the roof by the horrifying war in Ukraine, the market reaction to the Truss government’s mini-budget or the cost-of-living crisis affecting every part of our lives.
"We cannot underestimate these challenges, for both individuals and businesses, but it’s crucial that we don’t forget the longer-term problems we face.
"Low productivity, low growth and low investment dog our economy, with this playing into the already acute gap between the North and South. And this is before we consider the all too real challenges of climate change.
"So as we enter Spring, and are finally starting to see more stability, we have the opportunity to take stock and think more about the future. And the Government’s Spring Statement gives us the perfect time to collectively consider what the best course of action is now to help the country not only recover but grow and thrive."
She added: "Many businesses will be reassured by this relative stability that we are experiencing. It is now time to use this as an opportunity for us all – the Government particularly – to get serious about how we create a country that is fit for the future; economically, socially and environmentally.
"We have so much untapped potential and opportunity for growth, so we hope that the Government will use this moment to help propel us into a thriving future."
WNJ
Associate partner Matthew Johnson said: "Chancellor Jeremy Hunt will have very little 'wriggle room' when he comes to the dispatch box to give his spring Budget.
"Inflation, the impact of the ongoing war in Ukraine, continuing public sector pay unrest. Times remain tough and the challenges facing the country large.
"The Chancellor's autumn statement confirmed what most small businesses already knew – difficult times were ahead. With it came a raft of tax rises.
"Experts are predicting a 'constrained' Budget this time out, given the weak state of the economy and the need to bring inflation down and cut public debt.
"However, despite all that, businesses will be looking for some positives from the chancellor, to give them belief that better times are ahead and the support is there to enable them to go for growth."
Liverpool Chamber
Chief executive Paul Cherpeau said: "What businesses want most of all is stability and consistency, without the shifting sands of short-term, vote-winning policy changes. A Budget that prioritises sustainable economic growth is absolutely essential if businesses are to have the necessary confidence to plan and invest for the future.
"At the forefront of their concerns remains energy prices and we urge the government to take positive action and offer greater certainty to businesses about what lies ahead.
"Business rates reform has been discussed interminably for many years, but ultimately it is always frustrated by a lack of genuine appetite among policymakers to tackle such a complex challenge. Therefore, any announcement needs to be coupled with a defined timetable of delivery, or else the long grass beckons once more.
"We have a clear problem with low productivity and skill shortages in the UK, so the Chancellor must bring forward interventions which start to fill that void.
"There can be no quick fixes, but through a combination of targeted support to upskill younger people, incentivising experienced older workers to delay their retirement, and tackling spiralling childcare costs, the government can create an impetus whereby more of the right people are filling the right vacancies and we start to see a return to real growth."
Select Property
CEO Adam Price said: "Following the continued ripple effects from last year’s ‘mini budget’, many expect another cautious budget from the Chancellor on Wednesday. This will likely not be enough to reassure traditional homebuyers, with consumer confidence still lagging, but investors will likely be comforted by this continued stability.
"Since the Autumn Statement, both domestic and foreign investors have been reasonably active in the property market, with the UK still seen as a sound and reliable option, perceived as offering value for money due to the Sterling’s position in the currency markets and providing strong returns potential.
"This has been highlighted through sales at our newest development - One Port Street, Manchester - which pre-launched in December and has already achieved over 50% of sales. There is still an imbalance between supply and demand, particularly in the UK’s key regional cities, and investors recognise the opportunity it presents when taking a longer-term view.
"Further stability shown in this Budget should see even greater scale-up in activity from investors, buoyed by other global economic pressures appearing to be past their peak, long-term interest rate expectations lower than originally predicted, and inflation expected to stabilise by the end of the year.
"We would expect that this confidence caused by an ongoing period of stability will cause the UK’s regional cities like Manchester to gain further investment momentum, and have the opportunity to capitalise on this good feeling. We’re continuing to see strong interest from investors looking for opportunities to invest in core regional cities with strong rental markets and strong local economies."
BDO
Ed Dwan, partner and head of BDO in the North West, said: "Businesses are continuing to tell us that they are looking for certainty and targeted support.
"They need a period of stability to make the investment decisions that will underpin future growth and they’re seeking support to help close the skills gap so they can deliver against their ambitions.
"There is pressure on the Chancellor to reduce corporation tax rates – both from business groups and from some within his own Party. While it’s highly unlikely this will happen immediately, businesses would certainly welcome a roadmap which signposts future reductions.
"This would provide some much-needed certainty for business planning and signal to overseas businesses that the UK is a good place to invest in the long term."
Lloyds Bank
Martyn Kendrick, regional director for the North West, said: "Business confidence in the North West fell last month, with firms finding rising prices tough to navigate. They will be looking to the Chancellor to support their long-term growth ambitions in this Budget, particularly as they invest in their teams and staff amidst shortages.
"Growing the economy is critical for helping the North West to get back on track for its long-term goals, and the Budget is an opportunity to bring further stability and encourage investment in future growth.
"The Chancellor could show that he can help meet these ambitions by increasing capital allowances and providing the greater certainty and support for a more high-tech, low-carbon economy."
University of Salford Business School
Lecturer in economics and finance Dr Maria Paola Rana said: "The economic outlook for the UK in 2023-24 is now looking better than it was in November; government borrowing costs have decreased, however it is largely anticipated that ‘significant’ tax cuts will not be included in the coming budget.
"Public finances are still fragile. In fact, in the financial year to January, the public sector borrowed £117bn which is less than expected by the OBR, but still £7bn more than over the same period in the previous year.
"With the financial markets still closely watching, it does not come as a surprise that the Chancellor wants to remark his key priority of keeping public debt under control.
"High inflation persists, as well as the wave of public sector strikes and, with workers asking for an increase in pay, the Chancellor will have to decide what to do in terms of public sector wages, contemplating one-off bonuses or permanent increases. The Institute of Fiscal Studies (IFS) says that an increase in public wages or bonuses funded by an increase in taxes rather than borrowing, might reduce the inflationary pressures.
"Even if significant tax cuts should not be anticipated, an extension for a further three months from April of the energy support scheme (i.e., the Energy Price Guarantee, which caps households’ average annual energy costs at £2,500) is most likely to be included.
"We might also see fuel duty frozen for a year. These measures will clearly be welcome, but largely insufficient to tackle the severe cost-of-living crisis facing the country.
"The tax increases for investors, specifically the cutting of capital gain tax (CGT) and dividend allowance, due to decrease from £12,300 to £6,000 and from £2,000 to £1,000 in April 2023, will most likely be confirmed. In April 2023, corporation tax will also increase from 19% to 25% and Hunt could also confirm the application of the 15% minimum tax on multinational companies, as per international agreement.
"Focusing on the labour force, the insufficiency of which is one of the factors impeding economic growth, the Chancellor has stated on more than one occasion that he intends to implement a number of policies and reforms, including pensions, childcare system and benefits etc., to convince part of the inactive population to join or re-join the labour market.
"The hope is that the Chancellor can find the right balance between keeping the financial markets happy, providing the country with the necessary support during a cost of living crisis and ensuring economic growth in the longer term."
Aaron & Partners
Head of corporate and commercial Stuart Scott-Goldstone said: "Ahead of this year’s spring Budget, the positive is that the UK looks to have escaped a recession by the skin of its teeth, at least for now.
"However, the signs are that there are choppy economic waters ahead. Few would envy the position the Chancellor finds himself in, so it’s unlikely we will see many headline-grabbing sums of money being allocated when he takes to the despatch box this Wednesday lunchtime.
"While it may be unrealistic to expect business energy bill support to continue for all sectors, there are some more in need than others. Targeted help for those most in need such as the hospitality, manufacturing and chemical sectors would be welcome to avoid more firms falling into difficulty as costs continue to rise."
HybridTec
Managing director Sophie Gilmore said: "It is imperative that there is a form of practical support included in the spring Budget to mitigate the effects of the upcoming £500 rise in the EPG.
"This, coupled with the loss of the £400 energy discount, could be catastrophic for lower income households who are already under incredible pressure created by fuel poverty.
"An extension of the Energy Bills Support scheme would be the most obvious immediate solution; however, we would like to see the budget go further to support those under the most pressure.
"An increase on windfall taxes on energy producers or a temporary cut to VAT on energy bills could be some methods used to reduce prices for the most vulnerable, however whatever methods are used to offset the impact of rising energy prices, a wider and more long ranging package of support should be considered for the future.
"A wider consideration would be to provide additional support to enable people to access higher wages or return to the workplace if required.
"Access to training and upskilling could empower individuals to access higher wages, more sustainable and secure job roles and assist with tackling the cost of living crisis on a practical level."
Inquesta
Insolvency practitioner and senior manager Steven Mason said: "The outlook for the economy over the next 12 months remains delicate, which minimises the chance of significant giveaways from Jeremy Hunt in this Budget.
"As it stands, the main rate of corporation tax will rise to 25 per cent. This move has been widely criticised as stifling investment in the country, and it is likely to further increase pressure on UK businesses. The Chancellor is facing significant lobbying from his own party, who have urged him to use the Budget to ‘show there is a path’ to lower taxes and a better outlook for small businesses.
"The cost of the energy support packages has been lower than anticipated due to a fall in wholesale energy prices, so small businesses would welcome further assistance rather than the limited programme that is due to expire.
"The Chancellor has said that the economic plan will be based on four ‘E’ pillars – enterprise, education, employment and everywhere. He has also stated that the government’s long-term ambition is for the UK to have ‘the most competitive tax regime of any major country’.
"The Windsor Framework, recently negotiated by the Prime Minister, allows for closer ties with the EU, which must be welcomed. However, businesses could face a wait until the re-negotiation of the UK-EU Trade Cooperation Agreement in 2025 before seeing any tangible results such as reduced export red tape.
"The CBI has said companies would like support to be more energy-efficient as they prepare for next winter, and to ensure the UK can grow its energy security and compete in the race for new green markets and technologies.
"The Chancellor knows that this Budget needs to deliver for small businesses, who have suffered greatly in recent years. Measures must be introduced that increase confidence, boost economic momentum and encourage investment."
Hurst
Tax partner Adrian Young said: "After all the fiscal turmoil over the last few years, north west businesses and individuals will be craving a ‘no surprises’ Spring Budget from the Chancellor.
"Most commentators, as well as the Bank of England, now consider that inflation is finally coming under control, with the rate expected to fall to around four per cent by the end of this year compared with the current rate of nine-10 per cent.
"This decrease is being driven by falling wholesale energy prices and a reduction in the price of imported goods now that post-pandemic production difficulties have eased.
"Successive tax hikes over the last few years, coupled with cost-of-living pressures, have left people and businesses with less to spend on goods and services. This no doubt has also had a downward impact on inflation.
"However, the fact remains that UK taxpayers still face the highest tax burden in several generations. Given the highly unpredictable nature of the Truss and Johnson era, business leaders now simply want to see some stability in the tax landscape, so that they can plan investment and employment decisions.
"Given past performance, it is perhaps too much yet to expect Rishi Sunak and Jeremy Hunt to start to reduce tax rates, unless they have an early eye on the 2024 general election.
"However, employers and employees alike need to see some degree of certainty.
"April this year marks a further set of changes to the corporation tax regime in particular, including increases to the headline rates and reductions in reliefs for capital expenditure.
"Businesses will have enough on their plate dealing with this, and so will be hoping for no more tinkering by the Treasury for now."
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