Chancellor George Osborne has delivered a Budget backing business, it was claimed.
Measures to encourage employment, reduce taxes for people in work and support savers were largely welcomed by local business figures.
Steven Leigh, head of policy at the Huddersfield-based Mid Yorkshire Chamber of Commerce, hailed a “business as usual” budget and applauded the Chancellor’s stated ambition for Britain “to be the richest country.”
Mr Leigh said: “Anyone in business would want all the efforts they are making to be rewarded with success for the nation.”
He welcomed a promise to reform business rates which Mr Leigh said were contributing to the decline of high street businesses and which he branded “an old hat tax in a modern age.”
He praised the move to scrap employer’s national insurance for under 21s from this April and for young apprentices from April 2016, adding: “If we need to get young people into work, it is illogical to tax those jobs.”
Gary Smith, chairman of Calderdale and Kirklees Manufacturing Alliance, said increasing apprentices’ wages was a welcome move.
“We have benefited in both Calderdale and Kirklees by signing up a record number of apprentices in this area, which helps cut the unemployment,” he said. “The downside is they have little or no disposable income to spend and help other business by their spending. Businesses are to be further encouraged to invest to remain competitive and hopefully grow and take on more staff.”
Amanda Vigar, of Holmfirth-based accountancy firm V&A Bell Brown, said the decision to abolish end-of-year tax returns may work for employees or people with simple investments, but added: “It really won’t work for people with businesses, rental income or complex investments where there are a lot uncertainties during the year.
“HM Revenue & Customs’ systems are stretched beyond their capabilities as it is and this proposal is likely to cause chaos and potentially real financial hardship to taxpayers.”
The decision to scrap September’s planned rise in fuel duty was welcomed by Bernard Stern, of Huddersfield-based independent petrol retailer CJ Stern (Oils) Ltd.
He said: “I hope whoever is in government after the election sticks with the decision which will be very helpful to families and small businesses.”
Tanya Jackson, head of corporate affairs at Yorkshire Building Society, said a move to raise the personal savings allowance was “great news” for 2.3m taxpayers.
She said: “Millions of people are currently hit with a triple whammy of tax – on earnings, purchases and savings. This will remove one of those and puts millions of pounds back into the real economy. Savers have faced a difficult time in recent years as interest rates have fallen to lower levels than we have seen in the past so this is a welcome boost.”
Max Earnshaw, of property agency Earnshaw Kay with offices in Holmfirth, Huddersfield and Mirfield, said the Help To Buy ISA, helping people save for their first home was “absolutely brilliant” but questioned how it could be properly policed.
While welcoming the promise to reform business rates, he called for action to bring internet-based traders into line with bricks-and-mortar businesses in terms of costs.
“To set up an internet business costs nothing,” he said. “The government should look at levelling the playing field.”
Colne Valley Conservative MP Jason McCartney said: “We have been working through our long-term economic plan and the local economy has been steadily improving, with new jobs being created at businesses such as Camira Fabrics, Wooltex UK Ltd and David Brown Gear Systems. This Budget is another step on the road from austerity to prosperity with support for savers, lower taxes for people in work and a clear plan to make sure Britain pays its way in the world.”
But Huddersfield Labour MP Barry Sheerman accused the chancellor of “window dressing” and said: “This is a budget no-one really believes in because it doesn’t touch on some of the big issues. The country still has a tax system where there’s one rule for the rich and another for everyone else. It is not a budget that takes us in the direction we need to go in.”
