Welcome Moves For Local Businesses In Wake Of Autumn Statement

Published on: 14 Dec, 2012
Updated on: 14 Dec, 2012

There were a number of welcome moves for local businesses in the Government’s Autumn Statement says the Guildford office of PKF accountants & business advisers.

These also including the Chancellor’s U-turn on the limit for the annual investment allowance which will see it rise 10-fold to £250,000 for 2013 and 2014, .

Jon Hills, a tax partner at the PKF office in Guildford, said: “The Chancellor has clearly been stung by the criticism he received from the business community since the cut in the annual investment allowance – from £100,000 to £25,000 – took effect last April.

“Surrey businesses remain concerned about the economic outlook and access to finance continues to be a problem, so the temporary increase in the threshold won’t benefit everyone. However, the tax savings it could yield may be enough to persuade some of the more forward-thinking and better capitalised SMEs to accelerate their investments in plant and machinery.”

In addition, a range of other business measures were announced, including a cut in the main rate of corporation tax to 21% from April 2014, cancellation of the 3p per litre fuel duty rise, extension of small business rates relief to 2014, and £1 billion more capital for the new business investment bank and extra support for businesses selling overseas.

Jon Hills added: “Surrey and the South East is well known as an entrepreneurial hub, and although some of those entrepreneurs will be sceptical about the likely impact of Government-backed lending schemes and trade initiatives, there is no doubt that cancelling the fuel duty rise and continuing with small business rate relief will have a positive impact.

“Local Guildford motorists, in particular, will benefit from paying less at the pump, given they spend much of their time gridlocked on the town’s notoriously congested roads.”

Rhodri Whitlock, a partner and science and technology expert at the PKF office in Guildford, said: “Chancellor George Osborne announced further investment in the technology and science sectors, including £35 million for the development of 5G cellular communications at the University of Surrey and £600 million more for UK scientific research infrastructure. Guildford has a particularly strong presence in both these industries, so local organisations will applaud such measures.”

Jeff Jeffries, a partner and real estate expert at the PKF office in Guildford, added: “Surrey’s affluent homeowners will be delighted to hear there are no new taxes on property such as the much-mooted ‘mansion tax’. From a local infrastructure perspective, we will be watching with interest a number of the proposals announced for roads in the south east, including £150 million to tackle congestion at J30 on the M25; and a managed motorway pilot between the M25 and Farnborough on the M3.

PKF (UK) LLP is a leading firm of accountants and business advisers with more than 1,200 partners and staff operating in 20 offices in the UK mainland firm, incorporating a wholly-owned financial planning company and associated offshore practices.

The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience in the public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm’s website is www.pkf.co.uk