Tony Medcalf, tax partner at Liverpool-based chartered accountants and business advisers MHA Moore and Smalley, said:
“An end to the announcement of emergency financial measures which have dominated Chancellor Rishi Sunak’s budget announcements over the past 18 months will give businesses confidence that the economy is returning to a level of stability, allowing them to plan for and invest in their future with clarity.
“The Government has spent heavily since March 2020 to support businesses and employees through the Covid-19 pandemic. While many of the headlines from today’s announcement had already been publicised leading up to today’s speech, companies will also be relieved not to be presented with any additional surprises aimed at reducing Government borrowing through increased taxes.
“It appears the Government will look to raise additional tax revenues by prompting business investment and economic growth. This is supported by its pledge to increase research and development spending from 0.7 per cent of GDP to 1.1 per cent and an extension to the £1m Annual Investment Allowance until March 2023.
“These measures, in addition to several business rates relief measures for property improvements and green investment over the next 12 months and the already announced £7bn regional transport infrastructure will help to stimulate business growth while in turn creating tax receipts as businesses grow and become more profitable.
“Businesses in the leisure and hospitality industries will also be buoyed by the one year 50 per cent discount in business rates after a difficult 18 months for the sector.”