Maureen Frost, Deputy Chief Executive of Hampshire Chamber of Commerce, said: “The Chancellor understandably kept his overall focus on deficit reduction. However he mentioned support for virtually all parts of the UK except the South East. We would have liked to see more explicit measures announced for our region. The government needs to invest in successful areas as well as others.
“On measures nationally, we called on the Chancellor to do more to help businesses invest so we welcome his decision to safeguard the current investment allowance which had been due to drop dramatically from £500,000 to just £25,000. Maintaining the higher limit will help to ensure businesses can continue to invest in productivity, expansion, skills and recruitment.
“We are disappointed with the lack of detail on business rates reform, something we have long campaigned for. The Chancellor previously acknowledged the need for far-reaching changes but said little in this Budget. We still need to know exactly what will be involved in a review. Business rates are a tax levied irrespective of profitability and so don’t take into account the ability to pay. In most cases they are based on valuations set at the height of the property boom. The current system acts as a serious brake on investment and growth and the need for reform is now urgent.
“While we of course support fair pay for everyone, we are concerned that the increase in the National Minimum Wage is being introduced at exactly the same time as the majority of small businesses are funding pension auto-enrolment. We can see this combination of requirements impacting negatively on some employers. However, balancing this is the announcement that the self employed will no longer need to complete paper tax returns, something that will be widely welcomed and a positive step to reduce bureaucracy.”
