Fylde firms may see no corporate tax gifts in the Budget, warns county tax expert.

Tony Medcalf
Tony Medcalf

Fylde coast businesses may not see a give-away Budget on Wednesday, despite hints from the Government about an increase in infrastructure spending.

Tony Medcalf, head of tax at Lancashire-based MHA Moore and Smalley, said: “There’s been talk about the chancellor using this budget to woo younger voters, perhaps by offering some form of tax break to younger people.

“There’s been suggestions that this could be something around National Insurance Contributions, but we’ll have to wait and see.

“I think Mr Hammond will want to be seen to be increasing public spending. Therefore, we might see some announcements relating to increased funding for housing and the NHS and, perhaps, some relaxation of public sector pay caps.

“With the continued uncertainty around Brexit, the chancellor will want to be saying that ‘Britain’s open for business’.

"However, he’s still walking that tightrope of being accused by Labour of offering tax cuts to big business, so I don’t think he can afford to be too over the top.

"The better than expected Q3 GDP figures will probably have eased the pressure on the chancellor to intervene on business taxes. As a result, I think it’s unlikely we’ll see corporate tax rates going any lower than they are already.”