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Metro - opinions on budget U-Turn

Journalist: Rosie Murray-West, Freelance

ended 19. October 2022

Hi - I'm looking for business owners to give me their views on how the U-Turn in the budget will affect them. I'd like to know

a) how they feel about corporation tax and dividend tax changes

b) how they think customers will be affected/ they will be affected by the energy cap ending in April

c) What they think the government can do to help businesses now.

For Metro

6 responses from the Newspage community

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Debbie Porter
Managing Director at Destination Digital Marketing
We are no longer in an arena of U-turns. We’re just spinning a roulette wheel and seeing where the ball lands. When playing with the country’s economics, and doing it on a world stage, moderation is key for stability. Whilst the swing from 19% to 25% in corporation tax was a wild swing, chopping it again was just as wild and then we’ve swung right back again. The EU average is 21%, and the OECD average is 23%. There is much to be said for striking a middle ground to avoid the rollercoaster ride of instability we’ve all been forced to endure.
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Rob Peters
Principal at Simple Fast Mortgage
Firstly, the most vulnerable in our society and those on very low incomes need to be looked after during this tumultuous time. Small business owners don't mind paying a little extra in tax, and homeowners don't mind being frugal with their energy, if the clear direction is to help the country move forward from this mess we're in. But it requires clear, strong and committed leadership to rally the public to support this cause. Something which is severely lacking. Jumping from policy to U-turn sends one message only: these people have no idea what they are doing.
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Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
I'm furious with the government. Planning a strategy for a business and where and when to make investments isn't something that is done lightly. It takes time and concentration. The fact that announcements were made, and then eroded by attrition over weeks has made me lose complete trust in the government. A month ago we were getting tax cuts galore, now the tax burden is higher than even Sunak had forecast and they are expected to decimate public spending as well. How could things have got so bad? If the Government wants growth, there needs to be a corporation tax cut. There are plenty of ways to raise the money to allow for this that doesn't include making the poor poorer, but it needs to happen now. Without this, businesses won't invest and won't recruit and it will make our recession longer, sharper and darker for everyone.
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Robert Bolohan
Co-Founder at Lotuly
I don't believe there's something specific anyone can do, let alone the government, as right now it's chaos and the least of their worries is to help small business owners. Worry brings other businesses closer to shutting certain activities down such as marketing budgets, which will only make things worse for some of us who depend on other businesses using that marketing budget for their translation needs. We've had several clients cancelling projects or postponing them for the foreseeable future, leaving us with more worry than anything else. Even though there's been some good news around corporation tax that will barely make any difference. There needs to be a real plan focused on small businesses because, let's face it, big corporations don't have so many problems as we have and too many uninspired changes can break some of us for good.
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Mark Robinson
Managing Director at Albion Forest Mortgages
I think there are several things that could change for dividend owners. I am not upset about the corporation tax reversal, these things need to be done for the sake of the economy. However, they should be making plans for the energy crisis, we should have been investing in greener solutions for decades and now we are behind the game. Changing tax payments to monthly instead of twice yearly would help businesses spread the costs of their tax commitments, this is a small gesture but could potentially help cash flow. This could also be applied to sole traders to allow them to do the same.
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Sara Hall
Founder at Lilibet & Phil Publishing House
The lifting of the energy cap in April 2023 is one of the biggest problems facing the handmade community right now. It's the not knowing. The uncertainty surrounding rising energy costs has makers and artists on pause. No one dare make a move, and planning for the future is impossible. There is also a great deal of fear mongering, and everywhere you look the projections are bleak at best. Many makers are simply downing tools and shutting up shop, which is a heart-breaking state of affairs. Many small businesses I work with are reporting problems with stress, and their mental health is crumbling. It is very hard to remain positive in this bleak atmosphere.