The Budget 2024 unveils £40bn of tax rises, marking a significant change in fiscal policy. Key players in various industries react to the government’s financial plans.
- The International Monetary Fund has welcomed these ‘sustainable’ tax increases, providing a positive outlook on economic stability.
- Caroline Norbury OBE highlights the government’s commitment to the cultural sector, with investments in creative industries and regional development.
- Sam McArthur praises the support for Enterprise Investment Schemes, enhancing opportunities for innovative businesses.
- Paul Bainsfair expresses concern over the impact of increased Employer National Insurance on the advertising sector.
The government’s decision to raise taxes by £40bn, the largest in a generation, signifies a bold fiscal move. In a surprising endorsement, the International Monetary Fund has applauded the ‘sustainable’ nature of these changes. This endorsement suggests confidence in the UK’s approach to balancing economic growth with fiscal responsibility.
Caroline Norbury OBE, Chief Executive of Creative UK, views the Budget as a step towards future growth in the creative sectors. She appreciates the expansion of Creative Careers and investments in North-East’s Crown Works studio, highlighting the cultural sector’s role as a key economic driver.
Sam McArthur of Praetura Investments welcomes the continuation of the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs). These schemes, offering valuable tax reliefs, support high-growth UK businesses. McArthur notes the government’s focus on regional growth, particularly in northern cities like Liverpool, as a positive development.
Concerns arise from Paul Bainsfair, Director General of the IPA, regarding changes to Employer National Insurance contributions. He fears these changes will increase the financial burden on agencies, affecting their capacity to drive growth. Bainsfair also warns about potential diminished investment interest due to increased capital gains tax.
Jeff Watkins, CTO at CreateFuture, sees the Budget as a potential boost for the tech sector, particularly with the Chancellor’s productivity and efficiency targets. The commitment to record R&D funding and digital skill initiatives could foster significant growth in AI and cloud computing.
Mayor Andy Burnham of Greater Manchester supports the Budget’s focus on housing and devolution. He expresses gratitude for the new funding relationship with Whitehall, aiming to accelerate regional economic growth and improve residents’ lives.
Mike Parkes from GoSimpleTax notes mixed implications for self-employed individuals, welcoming stable tax rates but expressing concern over Employer National Insurance changes impacting contractors.
Rhys Merrett from The PHA Group reflects on Labour’s ambitious financial reforms. He highlights challenges such as investment concerns and regulation issues that the tech industry faces, emphasizing the importance of maintaining the UK’s status as a tech hub.
Budget 2024 marks a pivotal point in UK fiscal policy, with wide-ranging effects on various sectors.
