Anthony Andreasen, director at Gosforth-based RMT Accountants & Business Advisors, says: “With many North East firms battling a range of enduring financial, inflationary and operational challenges, the Chancellor’s clear focus on business support measures today will be what the region’s entrepreneurs and company owners wanted to see, and the hope will be that they have the impact that Mr Hunt wants to see as quickly as possible.
“The decision to make the full capital expensing system introduced earlier in the year a permanent measure will give business owners greater certainty about their future investment decisions and the growth strategies they’re designed to support, although the increase in the corporate tax rate to 25% that companies are now facing is likely to somewhat dampen its impact.
“Companies in the burgeoning North East knowledge economy will welcome the renewed investment pledges on innovation and AI, with the strategic manufacturing investment focus on industries such as automotive, life sciences and carbon capture matching the region’s existing commitment to leading the way in these sectors.
“Late payment remains a drag on the capacity of businesses to grow, so further measures to tackle the cashflow problems that this wholly avoidable issue causes will be appreciated by companies of all sizes, while planning reforms will be music to the ears of North East firms who often have to wait months or even years to get decisions on the projects they want to progress.
“The details on the Chancellor’s consultation on giving pension savers a legal right to require a new employer to pay pension contributions into their existing pension obviously still need to be seen, but the hope will be that this measure doesn’t give employers any significant additional administrative burdens to bear.
“Cuts in National Insurance contributions for individuals and the self-employed are balanced by the continuing freeze in personal allowances in the current inflationary environment, which are likely to leave many people paying out more than they’re getting back.”