23/03/11
Good for green, bold for business, encouraging for apprentices? Welsh business reaction to the budget
Here's a selection of reactions to the budget from businesses around Wales:
Andrew Cooksley, managing director of Wales’ largest training provider ACT “It is good to see that the government has seen the value and benefits of work-based learning by proposing to invest in young people out of work by providing 40,000 new apprenticeships and 100,000 work experience placements. This shows commitment to getting young people into skilled jobs and onto a long-term career path. We have yet to see how many of these new apprenticeships will be offered in Wales but creating new opportunities for young people will certainly have a positive effect on employment and economic growth.”
Ian Draisey, director at Machynlleth-based Dulas, one of the UK’s oldest renewable energy firms “The chancellor’s Budget announcement provides increased support for green technologies – such as the £2bn extra funding for Green Investment Bank (to launch in 2012) and the introduction of a carbon price floor for the power sector. These measures will help the UK achieve its carbon emission targets by 2020. The government has today taken further measures to promote work currently being done by the renewable energy sector following the recent Renewable Heat Incentive (RHI) announcement- a scheme similar to the Feed in Tariff that will make payments to those installing renewable heat technologies.
"This makes the use of renewable heating technologies such as wood boilers competitive with conventional fossil-fuelled heating and can provide significant fuel cost savings for those off the gas grid whilst compensating for the extra capital investment required. The RHI makes modern wood heating good for the pocket as well as the environment. The government continues to make positive steps to increase the use of new, green technologies and should be applauded for these measures."
Steve Theaker, senior tax partner UHY Peacheys “The latest Budget announcement signals a boost to the private sector in light of unprecedented public sector cuts. The most significant development is a 2% reduction in corporation tax. This should hopefully stimulate business growth and encourage companies to set up in the UK. Following the announcement that Northern Ireland will be given powers to set its own corporation tax rate, Welsh policy-makers will certainly be watching closely to see if it’s something that can be replicated in Wales.
“Doubling the tax relief rate for entrepreneurs to a new limit of £10 million is a very positive move in terms of promoting enterprise and it should encourage entrepreneurs to stay in the UK
“There were also a number of unexpected announcements including the 1p reduction in fuel duty and the introduction of the Fair Fuel Stabliser. Although, not a huge amount, it will certainly relieve pressure on motorists, making it easier to travel and better connecting the business community.”
Phil Cooper, managing director of Venture Wales, Wales’ leading business support organisation “In today’s budget announcement, the chancellor certainly had the business community in mind, taking welcome steps to help promote business growth and jobs by offering more support to new and small businesses. His various measures including no new regulation for businesses with fewer than 10 employees, rate relief holidays and increasing the EIS scheme, will be welcomed. These changes are intended to make it easier for new and small businesses to find funding and support which is what we need to stimulate growth and employment in Wales.
“Welsh businesses will also be most thankful for the good news on reduced fuel costs. The Fair Fuel Stabiliser will help not only reduce the operational costs of doing business, but will also lower the cost of getting to work, easing the financial burden by a small but significant amount.
“How these changes will funnel down to Wales and Welsh businesses remains to be seen and actual implementation of these measures can often be less successful than they intend to be. Small businesses and entrepreneurs might not be rushing off to pop the champagne cork after today’s budget, but they should be breathing a small sigh of relief.”
