Fylde business calls for a rates relief budget

The frail looking global economy is a major worry and businesses have appealed to the Chancellor not to make life more difficult for them.

Tony Medcalf, head of tax at Moore and Smalley in Blackpool, said: “Only a few months ago George Osborne was basking in the glow of lower than expected government borrowing costs and bigger than expected tax receipts.

“The forecast for the global economy has become gloomier since and there’s also the huge cloud of the EU referendum hanging over the UK economy.”

Hugh Evans from the North and Western Lancashire Chamber of Commerce said pensions auto-enrolment, the National Living Wage, the apprenticeship levy, higher dividend taxes and other measures had significantly increased up-front burdens for business.

He appealed for Mr Osborne to deliver the long-overdue business rates reform by April 2017, and focus on resetting the valuation, collection, and setting of the rates, as opposed to changing who gets to keep and spend the revenue;

He said: “In an increasingly uncertain economic environment, the Chancellor should avoid any and all moves that could damage business confidence.”

Tony Medcalf added: “After the surprises of the last budget and autumn statement it would be foolish to rule anything out, but I’m expecting a rather uneventful budget this time.

“On income tax, we know he’s in the process of raising the personal allowance to £12,500 and also has a long-term target of raising the threshold for the 40 per cent higher rate of income tax to £50,000 by 2020.

“Therefore, I’d be surprised if there were any major changes to income tax, though he may decide to accelerate the pace of some of these planned changes.

“I still don’t think you can completely rule out a reduction in the top rate of tax back to 40p, but it would be a very brave chancellor to do this in the current climate.”