Recovery Budget for private businesses as investment is incentivised
Private Enterprise Partner at KPMG, Shashi Prashad responds to the Budget
Private Enterprise Partner at KPMG, Shashi Prashad responds to the Budget
Responding to the Budget, Shashi Prashad, Private Enterprise Partner at KPMG, said:
“This was a Budget to support the entrepreneurs, SMEs and privately owned businesses that will be looked to for jobs and growth in the coming months and years.
“The super deduction of 130% tax relief on investment in plant and machinery is intended to supercharge business investment and may well do so. By giving it a finite window of two years, the Chancellor is incentivising corporate investment sooner rather than later.
“Combined with the ability to carry back trading losses for three years, even loss-making businesses will be considering whether to invest in future growth now to secure extra relief.
“The review of the R&D incentive and EMI tax regime will be closely followed by businesses considering building on their post COVID-19 investments in digital innovation as well as their workforce; they will be wondering whether the tax system may provide further support as they scale.
“By protecting many of the country’s SMEs from the corporation tax rate rise, the Chancellor has shielded the army of entrepreneurs and employers across the country from the Treasury’s need to recoup tax revenue. And the significant number of privately owned businesses in the retail and hospitality sectors will be both pleased to see the additional support from the new restart grants and relieved that their business rates holiday and reduced VAT rate continue for the short term.
“The well trailed extension to the furlough scheme, meanwhile, gives employers room to breathe as they gear back up to opening, and the doubling of the grant to take on new apprentices may even stimulate new jobs.”
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