Responding to Chancellor Jeremy Hunt’s Spring Budget, Federation of Small Businesses (FSB) NI Policy Chair Alan Lowry said:
“The increase in the VAT threshold as well as the cut to self-employed National Insurance Contributions (NICs) are to be welcomed alongside a package of small business support. This includes commitments to make progress on the HMRC administrative burden as well as extending the Recovery Loan Scheme under a new name – the Growth Guarantee Scheme. It was also good to hear that the Business Energy Advice Service is to be rolled out across Great Britain so we will be looking to Executive Ministers to ensure a similar service is delivered here in Northern Ireland.
“Further tax breaks for the film industry will help incentivise Northern Ireland’s burgeoning creative industries across the board, while the continued freeze on fuel duty is also welcome, given the breadth of Northern Ireland`s significant rural economy. The hospitality industry will also raise a glass to the freezing of alcohol duty, however, this is no substitute for the fact that Northern Ireland businesses in the retail, hospitality and leisure sectors still can`t avail of the 75% business rates discount which their counterparts get in England, albeit that is a decision for local politicians to make.
“Overall, this was a cautious budget for SMEs in terms of its ambition. Those running businesses will feel disappointed that there were not more measures announced to help ease tough decisions employers are having to make day-in day-out, given the high cost of doing business. For instance, the Employment Allowance has been in place for a decade and, whilst it is an invaluable assistance and incentive to creating jobs, it should have been raised to keep pace with the National Living Wage, especially if employer tax thresholds remain frozen.
“Although the Northern Ireland-wide Enhanced Investment Zone (EIZ) had already been announced it is good to note that the monies for this have now been formally allocated. Now it`s time to activate the EIZ at pace.
“Overall, the devil will be in the detail beyond the headline announcements and we will have to take time to consider those in the hours and days ahead.”