Budget 2008: Business

ePolitix.com Stakeholders comment on the measures that will effect business in chancellor Alistair Darling's 2008 Budget.

Comment from:

• Association of British Insurers
• Association of Chartered Certified Accountants
• Association of Consulting Actuaries
• British Retail Consortium
• Chartered Institute of Personnel and Development
• Construction Products Association
• Construction Skills 
• Federation of Small Businesses
• Finance and Leasing Association
• Freight Transport Association
• Institute of Chartered Secretaries and Administrators
• Institution of Engineering and Technology
• Investment Management Association
• Intellect
• London First
• Royal College of Physicians
• Royal Institute of Chartered Surveyors

Stakeholder response: The Association of British Insurers

To send a comment to the ABI click here

Stephen Haddrill, director general, said:

Protecting people in a tougher economic climate

"From today consumers will be tightening their belts.  Many people face higher taxes and tough news about the economy.  Consumers need to protect themselves, especially those who hold part of the UK’s £1.4 trillion of consumer debt.  They should review their finances and consider whether to insure themselves against losing their job or becoming ill.

Protecting hopes and business against flooding

"As well as a grim Budget today we have grim weather too.  The incidence of extreme weather is increasing.  Flooded homes are becoming commonplace.  The Chancellor must spend some of his green taxes on increasing protection for homes and businesses against the threat.

Capital Gains Tax  - no change to taxation of life insurance bonds

"The Governments lack of consultation over the effect of the CGT changes has caused confusion and uncertainty for savers and the insurance industry alike.

Peter Vipond, director of taxation, added: "The Government’s CGT proposals were made without consideration of the impact on consumers who hold investment bonds and the wider consequence for savers.  In future, the Treasury should deliver better analysis and consultation."

"The benefits of investment bonds remain:

The ability to draw a fixed monthly income independent of the performance of the underlying investments

That a withdrawal does not reduce the customer's age allowance or means tested benefits (important for pensioners).

The insurance company handles all the tax - basic rate taxpayers don't have to fill in a tax form, and have the calculations done for them

It's easy to switch from one investment fund to another inside a bond, without triggering new charges or a taxable event.

Pensions - Trivial commutation

Sarah Knight, assistant director of taxation, said: "Allowing very small occupational scheme pension pots (less than £2000) to be paid out as a lump sum is a useful simplification.  However it is disappointing that this couldn’t be applied across all small pension pots to reduce confusion for all low income pension savers.

Reinsurance

"The changes announced today, to the proposals outlined in the PBR, about the tax treatment of Life Company’s reinsurance are now better targeted and clear. However, we still believe retrospection on existing contracts should be removed."

Stakeholder response: Association of Chartered Certified Accountants

To send a comment to the ACCA click here

Chas Roy-Chowdhury, head of taxation, said: "This seems to be largely a Budget of delaying tactics. Rather like the Cheltenham racers, businesses are left waiting in the stalls by today’s announcement. We knew what was coming for business, but the Budget still penalises entrepreneurs and SMEs.

"ACCA welcomes the Government’s renewed focus on increasing the number of female owned businesses. But it is important to note that the Government has missed its previous target of achieving 20 per cent more female enterprises by 2006. What will be different this time round?

"The Chancellor’s announcement that BERR will consult on radical new proposals about the amount of regulation for SMEs is interesting. A critical assessment of the regulatory burden is needed, and qualitative and quantitative criteria should be introduced.

"ACCA is pleased the Government is thinking again on income shifting, having listened to our comments about the need not to run ahead with their proposals. But this must not be a delaying tactic for what is now an unworkable proposal.

"Credit is due regarding the Chancellor’s parallel Carbon Budget next year. This is good tax policy planning in terms of certainty and transparency. The Chancellor’s simplification measures for SMEs are also welcomed.

"When it comes to green taxation, Chas Roy-Chowdhury says hypothecation - detailing where tax goes - would make paying tax more palatable because business and individuals could follow their green pound. This approach could be used following confirmation that the climate change levy will rise in line with inflation.

Business Issues

Capital Gains Tax – A Capital Pains Tax
"No surprises here. Business has braced itself for the withdrawal of indexation and taper relief. This represents a sudden, painful and unexpected increase of 80% in the potential tax on disposal for many small business owners.

"It will be interesting to know how many entrepreneurs disposed of their businesses before 5 April so that they pay only 10% CGT rather than 18%. Looking ahead, ACCA fears that the new tax rules will impact adversely on economic activity by encouraging short-termism.

Corporation Tax – The mixed message tax
"When it comes to Corporation Tax, the Chancellor has persisted in mixed messages for businesses large and small. Corporation Tax rises to 21 per cent in April 2008, then to 22 per cent in 2009 for small businesses; but then the rate falls for big business from 30 per cent to 28 per cent. The impact will be felt unfairly by small business.

Non-doms – a number of minor relaxations as the levy is confirmed at £30,000
"While imposing a £30,000 levy on non-doms at least meets the needs of clarity, it still does not send the right signals to talented international entrepreneurs who want to do business in the UK. ACCA is encouraged by the Chancellor’s promise not to return for a second bite.

Cutting Carbon emissions - Climate Change Bill
"National and local government, businesses and individuals need to do more to play their part in protecting the environment. ACCA therefore welcomes the Government’s ambitious proposal for a statutory target to reduce emissions by at least 60 per cent by 2050.

"Quantifying and promoting the financial consequences of climate change via sustainability reports is vital for success and for transparency.

Personal Taxation Issues
-       Individual Savings Accounts (ISAs)
"Increasing the cash ISA limit from £3,000 to £3,600 from 6 April 2008 is a step in the right direction; but as an incentive to save it is not convincing since the overall ISA limit is raised by only £200.

-       Fuel duty deferred until October;
"Deferring the 2p fuel tax to October 2008 will be welcomed, but the real tax hit, with the extra half pence will come eventually, and there is no avoiding the £5.00 gallon of petrol price tag soon.

-       Duty increases for cheap alcohol
"An above-inflation increase alcohol duty was always on the cards to discourage heavy drinking, a social issue which concerns Government policy makers.

"It is hoped this tax hike will influence behaviour and deter binge drinking. The increase has been justified by a prolonged campaign to highlight the problem of binge-drinking Britain.

"But again, this is an area whether hypothecation of taxes would prove to tax payers that the money raised is being targeted at specific health service programmes to tackle this problem, rather than just a way of raising more revenue for the tax coffers.

-       Vehicle Excise Duty (VED)
"New bands for VED will be introduced so consumers choose the least polluting cars. This is a nod to the green lobby, but it will be interesting to see how consumers react to these new tax levels."

Stakeholder response: Association of Consulting Actuaries



To send a comment to the ACA click here

Karen Goldschmidt, pensions taxation committee chairman, said: "We are very pleased that, in answer to lobbying from the pensions industry, HMRC has come up with a package which includes bringing back the mechanism that worked well up to 2006 - a simple per scheme test. 

"The revived rules will allow members to take cash from company schemes without the complex test involving other pension schemes, if the value of each pension is no more than £2000 (pensions of around  £100 pa). 

"Whilst this sounds a small sum, we believe that even this level will considerably help the administration of schemes with many small pensions and the pensioners concerned. 

"Although we would have liked this level to be higher we do understand the various parameters within which HMRC has to work in relation to Government tax management and pensions policy. 

"We would, however, ask that HMRC review how the new rules operate and in particular whether it would be possible to increase the limit at some time in the future – we are sure that evidence will support that the new facilities are not abused. 

"Occupational pension schemes are complex and expensive to run and are very unlikely to be set up to abuse this very modest facility.  The interaction of the current facility for trivial commutation and the new one will not lead to unreasonable levels of cash out. 

"The ACA notes that there are many small pensions waiting to be paid in company pension schemes which have arisen for various reasons – often because members leave after short periods of service.  Paying these involves wasteful administration costs – at the lowest levels these costs can be many times the value of the benefit itself. 

"The old tax rules provided a simple efficient mechanism for occupational pension schemes to provide a one-off cash sum at retirement instead – something of much more use to a pensioner than a tiny pension.

"The new simplified tax regime introduced in 2006 extended the level at which commutation for cash could be exercised from effectively £5,000 to £15,000, but it also introduced new conditions that had unintended effects which have been damaging for company pension schemes and pensioners alike.  

"One of these conditions is that members must at present look at all the pension schemes they have when seeing if the pension is small enough to cash out. 

"These conditions have been extremely difficult for scheme members to understand and plan around and inevitably involved extra processing costs for schemes.  Overall, the result has been that the 2006 rules have prevented many small pensions from being cashed out.  Today’s reforms will ease this situation.

"ACA is pleased that HMRC has engaged with the industry in this and other areas to help bed down of the tax regime set up in 2006 - and we very much ask that this engagement continues: pensions are a very practical issue, and as we operate through the lifecycle of schemes within the "simplified" tax laws there will inevitably need to be some changes to ensure that the law works in the real world as intended."

Stakeholder response: British Retail Consortium



To send a comment to the BRC click here

Stephen Robertson, director general, said: "We’ll need to look beyond the headlines to the inevitable unannounced detail before we can fully assess this Budget, but it’s clear the Chancellor has huge holes in his accounts and is trying to hide an old-fashioned tax grab behind a bags and alcohol smokescreen.

"Retailers are driving efforts to achieve social and environmental objectives but the Chancellor’s green tax gimmickry is simply an excuse to take yet more money from hard-pressed businesses and consumers.

Compulsory carrier bag charges
"It’s outrageous to suggest carrier bags are a major cause of climate change. There are many more significant contributors. Why does the Government believe improving the energy performance of homes only deserves a feeble £26 million?

"Retailers have already committed to reduce the environmental impact of plastic bags by a quarter by the end of this year. Huge progress has been made without any need for legislation.

"Customers took a billion fewer bags in the last 12 months and retailers are over half way to achieving the target on cutting the use of new plastic. This shows bans or taxes are not the only way.

"By setting a date for legislation the Government appears to have jumped to a verdict already, abandoning their agreement. Retailers take their environmental responsibilities very seriously, but want policies that are based on clear evidence, rather than knee-jerk reactions to highly emotive campaigns.

Increased alcohol taxes
"We share the Government’s concerns on responsible drinking but are not convinced that raising the price of alcohol through taxation is the correct solution. The key issue is changing our culture and encouraging awareness of sensible drinking, a process retailers are committed to working with Government on as part of its alcohol strategy. The problem with taxation on alcohol is that it’s a blunt instrument that raises the price to millions of consumers who drink responsibly.

Incentives for companies to use greener vehicle fleets
"While focussing on the tax regime for cars, the Chancellor has ignored our calls to reward the use of greener vehicle fleets. Voluntarily, retailers are investing massively in achieving more efficient transport, including electrical and bio-fuel vehicles. This should be recognised and encouraged.  

"The Chancellor has also done nothing to reduce VAT on energy-efficient products, such as low-energy light bulbs and efficient household appliances. If he had it would have made them more affordable for customers, supported retailers’ efforts at promoting these goods and made his first Budget genuinely green.

Crossrail and funding local infrastructure projects
"We’re seriously concerned at the Chancellor’s claim that ‘Crossrail funding has been secured’. He certainly hasn’t explained how. Does this mean he has decided, without consultation, to give local authorities the power to impose Business Rates Supplements?

"Retailers already pay £4.5 billion a year in business rates, more than any other sector. Giving local authorities powers to demand more could see retailers paying out an extra £130 million. The Government must guarantee tight controls to stop local authorities abusing these supplements as another indiscriminate burden on struggling businesses."

Stakeholder response: Chartered Institute of Personnel and Development



To send a comment to the CIPD click here

Dr John Philpott, chief economist, said:"While a hit on Britain's drinkers is the most noteworthy feature of Chancellor Darling's first Budget his message on the overall economic outlook is less sober.

"If Mr Darling is to be believed, the UK is well placed to weather this year's global economic storm and set to sail into calmer waters from 2009 onward. Times will be tougher than of late – and worse than expected last autumn - but still good by current international standards and in comparison with previous tough times.

"The Chancellor had little scope to do much in this year's Budget and didn't do too much to disguise his limited room for manoeuvre. The Budget is broadly neutral - mildly expansionary in 2008-9 with a tiny give away clawed back in the following two financial years.

"Mr Darling is offering what amounts to small change to business - though the business community in general will be happier with the Chancellor this time around than they were with his pre-Budget report.

"There will, however, be cries of anguish from the drinks industry and the hospitality sector. With real incomes already being squeezed and consumers cutting back on spending it won't just be the patrons of bars and restaurants who are crying over their drinks tonight.

"Although the Budget is broadly neutral it is redistributive, with poor families with children and pensioners the main winners – especially those who are not too partial to alcohol and cigarettes."

Gerwyn Davies, CIPD public policy adviser, comments: "While we endorse the additional resources allocated to welfare reform and skills that build on existing initiatives, the CIPD welcomes the breathing space that today’s announcement offers to our members, who have had to contend with streams of employment legislation and initiatives in recent years – albeit many of them well received and positive for the workplace.  

"With recent CIPD research showing a record number of our members planning to carry out redundancies in the next three months, however, all efforts now need to be directed towards optimising organisational performance and minimising redundancies so that organisations are well placed to capitalise on any recovery in economic performance.

"Further investment to enable employers to take on more apprenticeships is also welcome.  The CIPD has called for further support for employers taking on apprentices, so we are keen to see the detail of the government’s proposals trailed in today’s budget."

Stakeholder response: Construction Products Association



To send a comment to the CPA click here

A spokesperson said: "The Construction Products Association has welcomed the recognition in the Chancellor’s first Budget statement of the challenges faced on climate change, housing and transport; but stressed that rhetoric alone will not resolve these issues."

Michael Ankers, chief executive, said: "We are pleased that the Chancellor has recognised these challenges, and confirmed that action is needed to address these issues.  However, it is disappointing that the Chancellor chose not to utilise this opportunity to lay out in detail how the government will begin to deliver its solutions to these crucial challenges. 

"The Chancellor’s renewed commitment to provision of new housing is welcome.  However, the announcement of an additional 70,000 homes does little towards meeting the government’s stated aim of three million new homes by 2020.  It remains unclear how this target will be met.

"The government has also missed the opportunity to address the problem of carbon emissions from existing housing stock.  Government must recognise that it has a key role to play in encouraging householders to invest in energy saving measures.  The Chancellor has a responsibility to provide fiscal incentives, through a reduction in either stamp duty or in VAT on specific energy saving products.  This will significantly influence homeowners spending priorities in a way that will support the programme to reduce carbon emissions in the UK. 

"The Association welcomes the recognition from the Chancellor that historically investment in transport infrastructure has been poor.  However, having abandoned its original target of a 5% cut in congestion on the national road network by 2010, the government’s new target is also at risk. 

"Construction of new and improved roads is now at its lowest for a quarter of a century and the current pace of progress is proving insufficient to accommodate traffic growth and curb congestion.  The government must now make firm commitments to reduce congestion if this issue is to be resolved."

Stakeholder response: Construction Skills



To send a comment to Construction Skills click here

Steve Geary, director of skills strategy, said: "This budget provides a boost for the construction industry. The fact that the Government has identified land for 70,000 new homes per year means that the industry can continue to develop sustainable and affordable housing for the British people, with nearly 200,000 homes already completed between 2006 and 2007.
 
"We also welcome the £60m pledged to provide new skills, apprenticeships and training for adults, which will enable our industry to help lead the closing of the skills gap by attracting new entrants and upskilling existing workers.
 
"Furthermore, the Chancellor's goal to make 30% of all public sector business available to the SME market will help the UK's burgeoning small construction firms to continue to flourish. The Government is the construction industry’s biggest client, and with over 90% of the industry employing 10 people or fewer, widening opportunities for small firms to benefit from contracts is extremely welcome."

Stakeholder response: The Federation of Small Businesses



To send a comment to the FSB click here

John Wright, national chairman, said: "The Treasury's dithering since the pre-Budget report and a series of damaging tax rises in the last year have totally undermined the government's position with small businesses.

"Alistair Darling’s first Budget is unlikely to make that situation much better, but it is a relief that it will not make it any worse either. Finally, it seems we may have an announcement from the chancellor that doesn't spring any nasty surprises on small businesses.

"The deferral of plans to change income shifting rules, which would have forced tens of thousands of family businesses to create and maintain a massive amount of extra paperwork on individuals' contributions to their business, is welcome news. The plans should now be abandoned permanently.

"We welcome the freeze on fuel duty until October, but the issue is unlikely to go away. The cost of fuel is damaging small businesses and their customers in every industry and every area of the country.

"Plans to reform regulation, improve access to finance by expanding the small firms loan guarantee scheme, help female entrepreneurs and for a goal to give at least 30 per cent of public sector procurement to small and medium-sized businesses all have our support. These plans will need to be backed up with real action.

"Small businesses are totally opposed to road pricing that does not discriminate between essential business use of the roads and non-essential use. We're worried that the chancellor appears to be pushing ahead despite massive opposition.

"The laudable aim to make all new non-domestic buildings zero carbon by 2019 must be handled carefully because it could restrict small businesses' access to premises."

Stakeholder response: Finance and Leasing Association



To send a comment to the FLA click here

Stephen Sklaroff, director general, said:"The Treasury's decision to reform business travel taxation is consistent with wider fiscal policy to encourage greener motoring. We are glad that the bands will be few and broad, and that some of discrimination against leased cars will be removed. We look forward to talking to the Treasury about removing the rest of the discrimination before legislation in 2009."

Stakeholder response: The Freight Transport Association

To send a comment to the FTA click here

A spokesperson said: "The Freight Transport Association says that the chancellor's decision to defer the two pence per litre increase in fuel duty until October 1 is very welcome, bearing in mind this week's increase in the price of oil to 0 per barrel and forecasts that it will rise further. 

"However, FTA says that any duty increase should have been put off for at least a year whilst the market remains so turbulent.

"FTA says that a six-month deferment will save industry some £140m. However, since January 2007 the transport industry has suffered fuel price increases of £2.5bn as the bulk price of diesel has increased from 74p per litre to the current 92p per litre.

"The high price of fuel impacts on not just the transport industry but the whole of UK industry as world prices go through the roof. In turn, these increased prices must be passed to consumers. For the chancellor to have added to this pain by seeking further taxation would have been unthinkable.

"But as the price of oil continues to rise, he must continue to keep his foot off the fuel duty accelerator – the proposed half pence per litre above inflation increase from 2010 can be no more than speculative.  FTA will seek a further deferment after October 1.

"FTA continues to call for a decoupling of the way fuel is taxed on commercial vehicles from cars."

Stakeholder response: Institute of Chartered Secretaries and Administrators



To send a comment to the ICSA click here

Roger Dickinson, chief executive, said: "The ICSA welcomes the Government’s announcement of its intention to extend the small firms loan scheme and the new initiative to encourage more women entrepreneurs.

"The opportunity for small and medium businesses to gain 30% of all government business in the next five years and the simplification of the tax system for small businesses should also be commended.

"However, with the corporation tax rate remaining at 28%, it remains to be seen whether the Budget has gone far enough to enable small and medium businesses to grow and for the UK to remain a competitive player in relation to other global economies"

Stakeholder response: Institution of Engineering and Technology



To send a comment to the IET click here

Robin McGill, chief executive, said: "We're pleased to see the Chancellor has continued to place a high importance in developing the UK's science, technology and engineering skills base.

"Access for science teachers to continuing professional development is extremely important and the Institution of Engineering and Technology continues to be committed to working with industry, Government and other professional bodies to address the shortage of appropriately qualified science and maths teachers.

"Likewise greater support for apprenticeship is welcomed. All these activities must link together to increase the number of people entering the science and technology sector, at all levels from technicians to chartered engineers. "

Stakeholder response: The Investment Management Association

To send a comment to the IMA click here

A spokesperson said: "The Investment Management Association (IMA) welcomes today's budget announcements which will further enhance the UK's competitiveness as a domicile for authorised investment funds.  The Chancellor has recognised the importance of working collaboratively with the asset management industry and has introduced a series of measures.  Specifically, the Government has announced:

"The launch of a new tax regime for Property Authorised Investment Funds which will ensure that for non-tax paying investors such as pension funds, charities and ISA investors there will be no tax on rental income paid by the fund.

"New rules to facilitate the development of "Funds of Alternative Investment Funds" which will enable UK authorised funds to be invested in a wider range of underlying funds, with appropriate investor safeguards.
Further work with the industry on reform of the SDRT Schedule 19 regime, which gives rise to an additional, fund-specific charge for authorised funds.

"Consideration of full tax exemption for authorised funds so that tax is not paid at both fund and investor level but is paid only at the point of distribution as if the investors had held the fund's assets directly.
Simplification of the "substantial holding" rule for Qualified Investor Schemes (QIS).

"These are funds designed for institutional and sophisticated investors and the rule gives rise to unnecessary operational and compliance costs, making QIS an unattractive vehicle for the industry and investors.

"The Budget also includes reform of the Offshore Funds regime, final regulations to allow electronic settlement of fund units and a number of other technical measures for which the IMA has been lobbying."

Julie Patterson, director of authorised funds & tax, said: "This package of measures will further enhance the ability of UK authorised funds to compete on a level playing field with funds from other domiciles by removing some of the barriers to product development and sales outside the UK.  Our constructive dialogue with the authorities has allowed us to develop a shared understanding of the issues and to continue to develop a programme for change."

Stakeholder response: Intellect 

To send a comment to Intellect click here
 
Improved procurement for small and medium sized enterprises
A spokesperson said: "While greater SME access to public contracts is certainly a positive thing, setting a target like 30% raises a range of questions about how it will be enforced, how SMEs will be encouraged to participate and how equitable it really will be.
 
The Chancellor today simply announced the creation of an advisory committee on SME access. We are waiting to hear who will sit on the committee: it is vital that not only a wide range of sectors, including technology are represented, but also that SMEs are consulted about what the practicalities of such an initiative and what they feel would really help them.

"Brown's Business Advisory Council created last year, contained just one technology company, when our sector represents at least 10% of GDP. We urge Anne Glover who will chair the committee, to ensure a more proportional representation in this case.
 
Science and Innovation
"In a budget prefaced by remarks on the importance of the creative industries, knowledge-based industries and technology manufacturing to Britain, the lack of funding for technology education, when science and innovation education are receiving extra cash, is striking. It smacks of a lack of appreciation of the real role of technology in the UK economy and is very disappointing."
 
Road pricing and active traffic management
"At the same time as establishing a fund to develop road charging technology, it is vital for the government to understand where how technology is developing, so that projects can be future proofed. As the technology changes and advances, government planning needs to keep up with it.

"We urge the government to consult with our industry to understand the technology, the market capacity and what is really practical prior to tendering for road charging. A simple, but effective mechanism for government-industry consultation already exists and it would be fool-hardy not to use it."

Stakeholder response: London First



To send a comment to London First click here

A spokesperson told ePolitix.com:

Non-Doms taxation – leave or levy?
"While Brown’s government is facing a difficult political balancing act, these proposals are ill-thought out.  London attracts the best talent from around the world. 

"Particularly with London’s economic outlook decidedly mixed, this is an asset that we cannot afford to put at risk.  Despite claiming to support competitiveness, the Government has ignored business views about the negative effect this proposal will have.

And Double Taxation?
"While the Treasury has made progress on trying to bring the £30k levy within the scope of the US Double Taxation treaty, notes in the Budget supplementary papers point out that authoritative guidance from the US Treasury and IRS is still awaited.

Of potential concern
"Possibly not all of the £30k levy will be allowed to be credited against US income tax, according to legal advice provided to the Treasury.

Air Flight Duty to replace Air Passenger Duty
"APD or the proposed AFD cannot be considered a 'green levy' unless hypothecated to fund improved public transport access to airports and measures to mitigate the environmental impact of flying.

End of Heathrow queues?
"Any measure to reduce queues at London's biggest airport is welcomed, but the current benchmark of 45 minutes for passport control queues for non-EU passengers is unacceptable. 

"The monitoring of queue lengths by the Border Agency is also inconsistent and opaque.  Passport Control should face sanctions for failure to meet queue targets.

Road pricing technology tenders invited
"This commitment to tackle the crucial questions of feasibility, cost effectiveness, privacy and impact on driver behaviour is very welcome. Despite the success of the original Congestion Charge, London urgently needs a fresh approach to tackling rising congestion, but the absence of a national framework has been cited as a reason for not making progress."

Stakeholder response: Royal College of Physicians



To send a comment to the RPC click here

Professor Ian Gilmore, president of the Royal College of Physicians and chair of the UK Alcohol Health Alliance, said: "We welcome the Chancellor’s decision to increase tax on alcohol.  The international evidence suggests that even moderate taxation rises will reduce alcohol-related deaths and this move, although modest, shows that the Government finally recognises the importance of taxation in reducing alcohol-related harm in the UK.

"Alcohol is now 65% more affordable than it was in 1980, and we need to reverse this trend.  This welcome direction of travel needs to be joined by other public policy measures to reduce availability, limits on advertising and promotion, and the introduction of better measures of screening and treatment for those drinking at levels likely to harm their health.

"The impact of an increase in duty on alcohol will be affective only if combined with strong Government action to prevent irresponsible discounting and promotions by the retail industry.  We call on the Government to tackle this."

Stakeholder response: Royal Institute of Chartered Surveyors



To send a comment to RICS click here

Luke Herbert, UK public policy manager, said: "Government is looking to establish regulatory budgets capping the maximum total regulatory costs Departments can impose each year on industry. This is designed to tackle the flow of new regulations, going beyond current initiatives to tackle existing regulatory costs. Government may start this initiative with certain sectors or SMEs. The other proposal in the new Enterprise Strategy, published today with the Budget, is to further examine exempting small businesses from new regulations or where that is not possible simplifying enforcement.

"A concerted effort to reduce the cost of new regulations on the property sector is massively overdue. Whilst regulations to reduce carbon emissions are needed there is increasing evidence that Government's latest approach is not nearly as efficient as it might be. With targets to increase housebuilding and affordability, reducing the regulatory cost of development is essential.

"RICS also welcomes the greater emphasis on reducing costs for small businesses. Chartered Surveyors are key business entrepreneurs across the country. Reducing their costs will help encourage new businesses, more competition and ultimately lower costs for the consumer."