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Home News Business

Wokingham firms see benefits in the new budget

by Charlotte King
March 11, 2021
in Business, Featured
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BUSINESSES have welcomed the government’s spring budget, and said it will help boost the local economy.

Boyes Turner, based in neighbouring Reading, said the latest economic measures are positive news for science and technology businesses, and will help the Thames Valley cement its reputation as a global tech hub.

Last week, Rishi Sunak, chancellor of the exchequer announced the spring budget, designed to revive the country’s economy following the coronavirus pandemic.

Mr Sunak revealed the furlough scheme will be extended until the end of September, however employers must begin contributing towards the cost from July.

Sue Dowling, partner at Thames Valley law firm Blandy & Blandy, said this will be “a welcome boost” for employers in sectors impacted by the pandemic, such as hospitality.

“However, the continued uncertainty and further extension of the Scheme will unfortunately come too late to protect some jobs, with many difficult decisions already have been made,” she added.

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Mr Sunak also announced new measures to make it easier for self-employed workers to receive government support grants.

The budget will also bring about the first rise in corporation tax in nearly 50 years. From April 2023, the rate will increase to 25%, but small businesses with yearly profits lower than £50,000 will not be affected.

Chris Harber, head of immigration at Boyes Turner, said the latest announcement will help more local tech companies attract global talent.

“It was encouraging to see some key immigration announcements in the Chancellor’s budget statement, which will be good news for technology firms and the life sciences sector,” he said. “To remain competitive globally, many businesses need to attract the best talent from around the world, and it is encouraging to see the government taking steps to make that easier.”

The spring budget also included a points-based visa for academia, science, research and technology jobs, as well as measures to make it easier for workers to get business visas.

Malcolm Hyde, South East director for the Centre for British Industry (CBI), said the budget should kickstart economic growth, but questions how it will impact the region in the long-term.

Over the past year, the UK has borrowed more than £350 billion – the highest amount since World War II.

“Firms across the South East will be relieved to receive support to finish the job and get through the coming months,” Mr Hyde said. “The Budget also has a clear eye to the future; to ensure finances are sustainable, while building confidence and investment in a lasting recovery.”

But he said the rise in corporation tax will cause “a sharp intake of breath” for many local businesses.

“It sends a worrying signal to those planning to invest in the UK,” he added. “The UK must remain attractive for every type of business, from the innovation, high-growth UK homegrown firm to the global firms investing in the UK.”

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