Andrew Moorby, managing partner at Tait Walker
The scope of the changes planned for the coming years is so wide reaching that at this stage it’s difficult to assess who the winners and losers are.
That said, the Budget was distinctly lacklustre when it came to the issues pressing to the North East. Any discussion of the Chancellor’s “Northern Powerhouse” was short of mentions for our region, whilst Yorkshire and Lancashire featured heavily. I have real concerns that our influence as a key player in the UK’s economy is being overlooked and that we are being left behind.
With the interaction of Corporation Tax changes, wage increases, income tax, dividend taxation and welfare cuts, it will be difficult for SMEs and other businesses to assess the impact on them and their employees until everything is in force.
Most changes are set for next year and beyond, therefore giving the region and businesses time to assess and plan for what will undoubtedly mean increased business costs and issues for employees at the lower end of the pay scale.
As a region we have high numbers of workers on benefits, so the cuts will be more keenly felt across the North East. If the government is able to pass welfare costs on to the employer with wage rises etc. then businesses need to plan for increased cost.