Pre Spring Budget comments from Andrew Moorby
Andrew Moorby, Managing Partner and Head of our Teesside office, discusses what he would like to see in the Spring Budget on 3 March 2021.
“The Budget is due to take place on 3 March 2021 with a backdrop of Brexit, Covid and a rapidly changing world where it is essential for economies to move away from traditional industries and start to embrace new, greener, industries and the opportunities these generate.
Covid has had a massive effect upon our economy and Government borrowing is predicted to increase by over £400bn as a direct result of the crisis. Inevitably, this will need to be paid for, but simply raising taxes at this point, when the economy is fragile, is unlikely to be the best solution. Increasing taxes now could simply dampen the economy and could ultimately have the opposite impact upon tax receipts. The better solution is to introduce measures that stimulate the economy, increasing employment both in numbers and quality and thus generate wealth, growth, and tax receipts!
Hence what would I like to see come through in the Budget? Given the period of uncertainty we have been living through, my primary call would be to have a long-term strategy that people can understand, and which will help to create stability.
Secondly, I would like to see measures that stimulate growth, ensuring that businesses have access to funding to allow it to invest and adopt new technologies. This would also help risking entrepreneurs to set up new businesses. We also need to see measures to improve the skills of our workforce and change these for the 21st century. Hence incentives for training and retraining.
Finally, we need to see improvements in our infrastructure. Initially this could focus more on 5G and related technologies rather than roads etc. Physical infrastructure improvements will be necessary, but they tend to help sustain growth rather than being a catalyst for it.”