Budget on Monday delivered a generally positive message, with the increase in
spending suggesting an end to austerity Britain on the horizon, whilst also
announcing an array of tax changes for both individuals and businesses.
Here, some of the FDC senior management team comment on what the 2018 Budget could mean for both regional business growth and property development in the UK.
“The overwhelming impression from Monday’s Budget was a sense of optimism despite the uncertainty posed by the approaching Brexit deadline. This is reflected in the increased activity we’re seeing in the dealmaking community, as ambitious businesses continue to pursue growth and utilise opportunities presented in this changing landscape. It’s encouraging to see the government supporting business and entrepreneurship by increasing access to finance for private sector investment, including an action in the 2018 Budget policy to unlock pension fund investment.”
“The shortage of homes in the UK continues to be a major issue that contributes to a stilted property market, so it was a welcome announcement of £500million for the Housing Infrastructure Fund for councils, to promote the building of 650,000 more homes. For the commercial property sector, the introduction of the Structures and Buildings Allows (SBA) - a new capital allowance on eligible construction costs of non-residential structures and buildings – is a small but positive step in stimulating capital investment into the development of commercial and industrial buildings.”
“The Chancellor announced a new tax on the manufacture and import of plastic packaging which contains less than 30 per cent recycled plastic, due to come into force in April 2022. Whilst this is a timely environmental measure, it will be interesting to watch how businesses throughout supply chains will prepare to absorb the cost of a tax on non-reusable plastics, particularly in the already challenged retail sector. No doubt the increase in demand of alternative compliant materials will become temporarily more expensive. Of course, when thinking about the outcome of this Budget we must keep in mind that there may be further changes when the Chancellor delivers a post-Brexit Spring statement in Mach 2019.”
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