"We are already seeing the impact in the days following the Budget, and sentiment among SMEs appears to have shifted. In fact, according to a new survey by Barclays, while many firms paused investment ahead of the Budget, 42 per cent agree it has given them a clear and stable direction for future plans, and four in 10 (38 per cent) business leaders who delayed investment until the Budget now plan to increase it."
"The headline rate of corporation tax remains at 25%, offering the kind of long-term certainty to support confident planning and forecasting. Alongside this, the existing full expensing framework for most plant and machinery continues, while a new 40% First-Year Allowance (FYA) for "main-rate" assets will come into effect from January 1. Importantly, the £1 million Annual Investment Allowance remains unchanged, meaning SMEs investing in equipment, machinery or qualifying property can still benefit from rapid tax relief on capital expenditure."
UK businesses, particularly SMEs, have faced uncertainty from rising National Insurance contributions, the national minimum wage, inflation, and volatile energy and supply chain costs. The autumn Budget creates greater predictability by maintaining a 25% headline corporation tax rate, preserving full expensing for most plant and machinery, introducing a 40% First-Year Allowance for main-rate assets, and keeping the £1 million Annual Investment Allowance. These measures aim to incentivise capital expenditure and support growth, innovation and skills. Early indicators and a Barclays survey show increased investment intent among firms that had paused spending, even as cost challenges persist.
Read at London Business News | Londonlovesbusiness.com
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