Budget gives with one hand and takes with another, warns Optimum director

Rob Stokes, Director at accountancy and law firm Optimum, said on the face of it the Budget did not appear to bring any particular good news for businesses – it was a case of give with one hand, and take with another.

“The hospitality and leisure sector will benefit from the increase in the threshold for Small Business Rate Relief, but at the same time National Minimum Wage and National Living Wage are rising by nearly 4% and employers will bear this cost,” he said.

“We are interested to see the detail of the new Founders’ Relief, but the devil is in the detail – will it apply to existing businesses or only to new businesses? Is it the case of an old measure that has been wrapped up as something new or is it a limited new relief?

“The Chancellor also glossed over the reduction of the Business Asset Disposal Relief from £1m to £500,000, which may force business owners to sell off their companies earlier than they might have planned, because the measure will potentially cost them about £30,000.”

Finally, Rob said the announcement of more devolution of business rates and ultimately income tax to mayors and local authorities was a red flag.

“With so many councils strapped for cash or on the verge of going bust, are they best placed to deliver value for this cash ”