Mixed feelings for enterprise
Spring Budget 2023
Spring Budget 2023
Karl Edge, UK and EMA Head of KPMG Private Enterprise, said:
“Private enterprise investment has been held back as leaders focus on fighting energy and other input costs, recruitment shortages and sustained economic instability. The intervention to increase investment allowance and SME tax credits for R&D is positive, but doesn’t match the generous super-deduction scheme that it will replace or account for the lack of business rates reform. With the Corporate Tax rise also still going ahead the economy in a precarious position, and businesses still absorbing price increases, it will be hard to persuade many to dust off investment plans and come out of survival mode any time soon. I expect the announcement fell short of expectations for start-ups, scale ups and more established SMEs and family-owned businesses, given the scale of the task at hand.
“When considering the longer-term picture, there will be enthusiasm for the continued commitment to devolution and plans to champion industry clusters across the UK. These partnerships will take time to pitch, secure and deliver on any proposals, but I know that the ambition and hunger from enterprise is there to help get these off the ground even though the scale of the interventions on offer could be considered lean.
“With private businesses accounting for the lion’s share of employment and jobs roles, there will be support for the Government’s plans to revitalise the labour pool and encourage more people into work. The fortunes of enterprise are shaped by people, their skills and ideas. The immediate threat of recession may have abated, but in the face of what many perceive to remain a disruptive, volatile and uncertain economic outlook, the success of such policies will be critical to the future and resilience of UK enterprise.”
Alastair Henry, Citypress (on behalf of KPMG UK)
About KPMG UK
KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.
KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.