Budget 2014: Business Expectations

Ahead of the Chancellor’s 2014 Budget statement this afternoon, here’s a summary of measures and policies that the UK’s leading business groups are calling for:

Federation of Small Businesses:

• focus on enterprise and encouraging small business growth
• maintain reform in banking and energy markets
• pro-enterprise policies to encourage job creation and sustained investment
• boost Community Development Finance Institutions (CDFIs).

Confederation of British Industry:

• introduce an energy package which encourages investment in generation and helps businesses struggling with high energy costs
• extend the Annual Investment Allowance for smaller firms beyond 2015
• incentivise longer-term equity investment through tax relief for retail investors
• introduce a capital allowance for structures and buildings
• freeze Air Passenger Duty.

British Chambers of Commerce:

• introduce a new £1,000 payment to businesses who hire long-term unemployed young people or a new apprentice
• extend the Apprenticeships Grant for Employers (AGE) scheme by two years
• increase the Enterprise Investment Scheme (EIS) tax relief from 30 per cent to 50 per cent for investors in businesses run by under-24s.

Forum of Private Business:

• a fundamental review of business rates
• phase out VAT on the fuel duty element of pump prices
• introduce effective measures to tackle late payment
• introduce an export credit scheme to support small businesses
• extend existing skills grants for small business employers.

A selection of other calls:

• British Bankers’ Association – extend the Annual Investment Allowance, increase the Seed Enterprise Investment Scheme (SEIS) limit from £150,000 and enhance the ISA regime

• UK Business Angels Association – extend the £10m lifetime limit on Entrepreneurs’ Relief, continue the SEIS 50 per cent CGT write-off into 2014/15 and extend the SEIS investment limit to £250,000

• Institute of Chartered Accountants in England and Wales – increase awareness of Government support for SME exporters, fundamentally review the UK tax code and commit to Government guarantees on loans to help new businesses grow.