Budget 2006: Business response
Business Stakeholders respond to measures announced in the Budget.
Stakeholder Response: Federation of Small Businesses
Carol Undy, FSB national chairman, said: "Previous Budgets have made the tax system complicated, so a year with few changes like this one is of some relief to our members, who will not have to deal with many more tax alterations.
"We would, however, have welcomed some mention of positive measures for hardworking small business owners.
"The chancellor’s statements on employer involvement in further education are welcome.
"Small businesses need employees that have basic levels of education as well as valuable business skills.
"It remains to be seen whether the contents of the Budget speech are actually translated into practical improvements in skill levels.
"We welcome the freeze on fuel duty, but we would like to see it extended beyond September.
"We are concerned with the increase in the climate change levy from 2007, which is seen by our members as a straight tax, which does little to tackle climate change.
"Energy prices for small businesses have rocketed recently, so the promise to press for liberalisation of the European energy market is welcome.
"We will await the results with interest."
Stakeholder Response:
Miles Templeman, director general of the IoD, said: "The competitive advantages the
"We need to reduce the rate of corporation tax in order to boost our competitiveness."
Stakeholder Response: Association of Chartered Certified Accountants
Chas Roy-Chowdhury, head of tax at ACCA, said: "Gordon Brown confirmed these allowances in last year’s pre-Budget report, so there are no surprises here.
"The family-friendly aspect of the Budget is still strong, with a commitment to increasing child tax credits and child benefit.
"But what has to be remembered is that working
"We generally welcome his announcements on Child Tax Credits to raise the child element of the credit by 14 per cent over the next few years, but the chancellor has not addressed the complexity of the system."
Stakeholder Response: ICAEW
"This budget does nothing to end uncertainty for businesses over their medium and long term tax obligations.
"In 1997, the current chancellor started his term in office by introducing reforms that have underpinned economic prosperity over the last 9 years.
"This budget has missed the opportunity to secure that legacy."
Stakeholder Response: The Chartered Management Institute
Petra Cook, head of public affairs, said: "Given that 80 per cent of the workforce of 2015 is already in employment, it is disappointing that there are no additional incentives for higher-level adult skills.
"Demographic change, new age discrimination regulations and pension reforms all point towards the extension of working life – so government support for skills must extend to all ages.
"The Institute looks forward to seeing the flesh of policy put on the bones of the Budget statement in the forthcoming further education white paper on 27 March.
"The Institute believes that the new further education reforms, together with the final report of the Leitch review of skills, will be a crucial test of how seriously the government is facing up to the need for better management skills to help drive UK productivity."
Stakeholder Response: The Association of Convenience Stores
Association of Convenience Stores public affairs and communications manager James Lowman said: "Neighbourhood retailers are concerned about the increasing burdens of regulation such as the rise in the national minimum wage and the potential compulsory employer pension contribution, costs which retailers struggle to absorb.
"It is also disappointing that the Budget did not include measures to reduce business taxes and improve rate relief.
"ACS will continue to call for these measures to be implemented by working with the government to ensure that the views of convenience store retailers are heard."
"Convenience retailers will be relieved that the announcement on increases in tobacco duty is in line with inflation, with freezes on duty on spirits and sparkling wine.
"The government has announced in the Budget, additional measures to reinforce their strategy on tackling smuggling of tobacco products.
"Whilst we are looking at the proposals, we still believe that every penny the chancellor increases is another penny going into the bootleggers pockets.
"He is continuing to make them the supplier of choice throughout communities up and down the country."
Stakeholder Response: Professional Contractors Group
PCG chairman Simon Juden said: "This offers a clear opportunity to address the unfair and inconsistent intermediaries legislation, known as IR35, as well as the enormous complexity of the taxation of freelance consultants and contractors.
"We look forward to engaging positively with government on these issues, as we have long campaigned for consistency, clarity and common sense in the taxation of freelancers.
"We also welcome, in principle, discussions about aligning the income tax and national insurance systems. This represents an opportunity to remove distinctions which are meaningless in practice."
Stakeholder Response: Association of British Insurers
Helen McCarthy, ABI head of pensions development, said: "The government's announcement on how IHT will apply to the new alternatively secured pensions is a victory for common sense.
"We are pleased the government has listened to the industry and will maintain existing IHT exemptions where death occurs before the age of 75 and that further exemptions will apply in relation to spouses or civil partners, other dependants and charities where death occurs after age 75".
Stakeholder Response: Construction Products Association
A spokesperson for the Construction Products Association told ePolitix.com: "Business competitiveness is likely to be further damaged after the punitive rise in the climate change levy, announced by the chancellor in his Budget speech.
"With
"Increasing the levy, which is focused only on
"The Association does, however, welcome some of the other measures in the Budget to assist industry competitiveness and is pleased to see the government remains committed to reducing red tape and to speeding up the planning system.
"However, we are still waiting to see if these fine words, which we have heard many times before, are followed by effective action.
"The Association is also pleased that there is no significant increase in other business taxes, but the government does need to acknowledge the impact that past tax increases are having on industry.
"The chancellor needs to set a clear programme for easing the tax burden on business and not just claim credit for not making it worse."
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