Regional accountants Bishop Fleming, which has an office in Bath, said Philip Hammond’s first Autumn Statement was a clarion call to industry to be more productive and to make the UK ‘match fit’ for a bumpy Brexit ride ahead.
It said the Chancellor’s first fiscal statement promised billions of government money for houses, roads, rail and digital 
infrastructure, to get Britain building its way out of the debt black hole.
His spending and tax incentive plans were firmly aimed at making the UK more dynamic, with tax giveaways for businesses and consumers. For businesses, he promised a new industrial strategy green paper before the end of the year, and a full review of R&D tax incentives.
The firm, which also has offices in Bristol, Exeter, Plymouth, Torquay, Truro and Worcester, welcomed the investment in infrastructure and the review of R&D incentives, but expressed disappointment that there was no commitment to reducing business red tape, or reforming business rates.
Neither was there any promised let-up for landlords who, from next year, will face massive tax rises ushered in by the Chancellor’s predecessor.
However, business owners would welcome the previously announced reduction in Corporation Tax from 20% to 17% by 2020.
Bishop Fleming partner Andrew Browne, pictured above, said: “The promise of extra funds for innovation and R&D will help businesses, though the amount needed will have to increase over time as it’s not really anywhere near enough.
“Confirmation that corporate taxes will drop to 17% will make the UK a tax haven to make us attractive for inward investment – though the disparity between personal and corporate rates could lead to a rush to incorporate.”
He said that most businesses had been braced for an increase in petrol prices. “But having frozen fuel duty yet again there was a tangible sigh of relief,” he said.
Bath accountants Richardson Swift corporate tax consultant Geoff Don , pictured left, said there had been few surprises from an Autumn Statement that was promoted as being one for a “country that works for everyone”.
“Even so, you do not have to look far to find key announcements that could benefit the Bath business community,” he said.
“The Chancellor has clearly signalled the government’s aim to prioritise investment in UK innovation and infrastructure by committing additional funds for research and development (R&D), and for addressing weaknesses in our transport system by tackling congestion, pinch points and digital rail signalling.
“This is welcome news, not only for the city’s technology sector but for businesses that transact with other parts of the UK.”
He said notable commitments included a restatement of Monday’s announcement by Theresa May of £2bn more per year in R&D funding, along with £1bn investment in full fibre broadband and 5G trialling.
“Not only will our universities benefit but also businesses with R&D projects in areas such as artificial intelligence (AI), robotics and industrial biotechnology,” he said.
“While these are not changes to the existing R&D tax advantaged schemes, we hope that the new spending will mean increased access to grant funding for those in the technology sector and for the University of Bath, which is a key local employer. Improvements in broadband speeds should benefit all businesses across our region.”
Bath businesses may have to wait a little longer for the “hoped for” 15% corporation tax rate, he said, as Philip Hammond only went as far as to confirm that the main rate of corporation tax would be cut to 17% from 2020.
“But the projected improvement in Government borrowing may give scope for future reductions. The owner-managed businesses that we advise would certainly welcome this,” he added.
Dominic Bourquin, pictured below right, tax consultancy partner at regional accountancy firm Monahans, which has seven offices in and around Bath, said the Autumn Statement had pluses and minuses.
“On the plus side, anyone over 25 will be due at least a national living wage of £7.50, up by 30p on the current level, so that’s good news for them,” he said.
“The extent to which that may prove inflationary – many employers could find that additional cost hard to absorb – remains to be seen. 
“We’ll all see the benefit of the rise in personal allowance to £11,500 and a lot of entrepreneurs and business leaders will welcome the increase in the higher rate threshold to £50,000 by 2020 too.”
The postponement of the increase in fuel duty would clearly be a relief to hauliers, fleet managers and SMEs, and everyone would eventually feel the lift as it trickles down the food chain to our weekly shop.
“A £2.3bn housing infrastructure fund to open up sites for up to 100,000 homes should be welcomed, but forgive me if I’m a little sceptical about the subject of delivery of affordable housing – it does feel as if we’ve been here several times before,” he said.
“And the move to prevent letting agents charging potential tenants upfront fees seems noble enough, until you consider that if landlords have to absorb those costs, it’s only a matter of time until they resurface in the form of higher rents.”
He said there was evidence of some promises being kept. The Chancellor confirmed that corporation tax would still fall to 19% by next April and to 17% by 2020 as planned, “which is good news for SMES and larger companies alike”.
He added: “What will be not quite so welcome to many consultants and labour-intensive operations that are on flat rate VAT is that they will no longer be able to retain a large a portion of the VAT they charge, but will have to hand most of it over to the VATman. The loss of that ‘handling fee’ is going to put a bit of a dent in a lot of profits.”
Anyone receiving salary sacrifice benefits should gird their loins. “Your pensions, childcare and cycling-to-work benefits are safe, but you’re going to have to say goodbye to the others,” he said.
“On the other hand, if you’re in receipt of in-work benefits the amount by which they taper off as you work longer hours will be reduced, as the Government attempts to reward those who work more.”
He said the increase in insurance premium tax from 10% to 12% was a “slightly sneaky move”.
“That’s a tax on your travel insurance, house insurance, business insurance – so its additional cost is not to be underestimated,” he said.
“If you have the time, or can’t sleep tonight, you can go online and look at the full 70-page Autumn Statement document. If you have better things to do with your time, let me sum it up for you. It contains nothing earth-shattering. But then again, who really thought it would?”
Institute of Directors regional chairman Nick Sturge, pictured left, was surprised to see the sudden scrapping of the salary sacrifice scheme next April, which he said would “hit larger SMEs and corporates – and with little notice and time to implement”.
However, he welcomed the “significant investment” in money for universities as it would encourage and assist them to work more with businesses.
“We look forward to seeing the Industrial Strategy which we expect to provide more detail,” he said.
“We are pleased that there will be significant investment in broadband and with the £191m going to South West Local Enterprise Partnerships (LEPs) and £400m going into the British Business Bank – and the hint that this may be targeted outside the South East.
“We hope that will increase the money available to tech, digital and other firms wanting to scale up.”
The West of England Local Enterprise Partnership (LEP) welcomed the focus on increasing productivity and the need to tackle the infrastructure deficit, which its chair Stephen Robertson, pictured right, said matched its own local strategy for enabling economic growth. 
“We are looking forward to understanding in greater detail what the Housing Infrastructure Fund and National Productivity Investment Fund in particular will mean for our region and what our share of the new funding to tackle transport pinch points will be,” he said.
He was also keen to hear the outcome of the £1.8bn Local Growth Fund settlement, which would be invested in local projects to stimulate growth and deliver wider benefits for the area in terms of new jobs, new homes and economic growth.
Also critical to the West of England’s economy was the commitment to faster, more reliable broadband.
Stephen Horton, pictured below, a senior executive in the Bath office of regional law firm Thrings and an expert in capital tax planning, taxation of trusts and estate administration, it came as no surprise that the Office for Budget Responsibility's (OBR) had decided to revise down growth forecasts.
“A number of our clients have cited the economic uncertainty as the primary reason for postponing investment decisions,” he said.
The Chancellor’s announcement of £191m for LEPs in the South West to help improve transport connections, housing, training and digital connectivity would be welcomed by businesses in the region.
“Mr Hammond conceded that the concentration of economic growth in London and the South East was not good enough, and businesses in Bristol, Bath, Swindon and the surrounding areas hope a proportion of the £23bn National Productivity Fund for infrastructure and innovation will be assigned to projects locally,” he said.
“The South West is rich in tech companies and start-ups, and the £400m injection into the British Business Bank to support venture capital funds is particularly welcome news for the region.”
However, he said the campaign to scrap the 3% Stamp Duty Land Tax (SDLT) surcharge introduced in April for anyone buying a second home appeared to have fallen on deaf ears.
“It is clear that the reforms have slowed the housing market, specifically buy-to-let, with holiday homebuyers, parents buying for children and even flat owners seeking to extend leases on their properties also affected,” he said.
“The abolition of the surcharge would also have created a greater supply of housing to the rental market and, therefore, a fall in rents. However, the Chancellor did at least attempt to give a break to tenants by announcing a future ban on letting fees – though how far this saving will be felt by individuals rather than merely passed on in the form of rent increases remains to be seen.
“From the point of view of the landlords, a new £1,000 allowance for property income may offset the fees they could potentially pick up should the ban on agents charging fees come into effect. The consultation will provide greater clarity on what form the ban finally takes.”
