Package of measures suggested to help South West businesses
A leading tax accountant is calling for a package of measures to help businesses in the South West following the UK's historic decision to leave the European Union.
John Endacott, Head of Tax at chartered accountants and business advisers PKF Francis Clark, says action is urgently needed in a number of areas to promote economic activity.
His proposals include:
• Boosting domestic business investment through the new Investors' Relief.
• Reviewing Stamp Duty Land Tax rates, in particular the new three per cent surcharge.
• A possible temporary cut in VAT, if necessary targeting holiday accommodation, restaurants and other tourist related activities.
Mr Endacott said he was particularly keen for the government to fully implement Investors' Relief, which is an addition to the existing Enterprise Investment Scheme and Entrepreneurs' Relief.
His concern was that, following the referendum vote, the UK economy, and the South West economy in particular, needed to promote UK domestic investment in businesses.
Mr Endacott said: "Compared to the economic recovery in the 1990s, it is quite clear that there has been a far lower level of business investment into the type of clients that I tend to see.
The business investment has been heavily dependent on foreign investment. Whatever happens over the next few months, one must expect that foreign investment is likely to reduce.
"It is therefore vital that measures are pursued to encourage business investment in the South West.
"We need an effective voice for business investment in the South West. That is going to be truer than ever in the next year or two and I am therefore concerned that the opportunity in the current Finance Bill to help formulate something that will boost the small and medium sized (SME) business community in this way might be missed."
Mr Endacott, who is involved in lobbying on certain business tax measures through the Institute of Chartered Accountants in England and Wales (ICAEW) Tax Faculty, also urged an increase in the annual investment allowance to help promote funding of plant and machinery.
He also called for a review of the Stamp Duty Land Tax (SDLT) amid fears the new three per cent surcharge could act as a disincentive to investment in building houses to let. One option could be a SDLT 'holiday'.
As for VAT, Mr Endacott suggested a temporary cut on the lines of the one implemented by the then Prime Minister Gordon Brown in 2008.
Mr Endacott added: "Even if that cannot be done across the board to promote economic activity, and to help avoid a recession, then consideration could be given to cutting VAT on holiday accommodation, restaurants and other tourist related activities which could be a major boost for our local economy."
