David Smeeton, head of the Birmingham office of Colliers International, said: “This was a carefully thought through budget that seems to have achieved a political balance within the coalition and likely to have a positive impact on rating agency and investor perceptions of UK political and economic stability.
“The headline reductions of corporate taxation rate to 24p and the ‘temporary’ 50 per cent rate should bolster the perception that the Government is keen not to erode UK competitiveness in attracting and retaining businesses. This may bring greater certainty to corporates whose investment decisions have been on hold for far too long. The emphasis on promoting growth rather than cutting costs is welcome and will perhaps bring greater certainty to businesses evaluating when and where to invest in expansion. This should be welcome news for Birmingham at a time when the city is investing heavily in its infrastructure in order to increase its competitiveness as a global destination for business.
“Despite the stamp duty announcement there are few measures targeted directly at the property industry – a bit of a break on empty rates would have been a welcome addition to the brew.”
Sarah Butterfield, associate director in the planning team at Colliers International in Birmingham, said: “On the 27 March 2012 the Government will publish a National Planning Policy Framework (NPPF) and they should be commended for seeking to put in place a document that seeks to encourage development in these testing economic times, with a presumption in favour of sustainable development and suitable protection for environmental resources. The Framework reaffirms many long-standing Government planning policies and will provide councils with less room to prevaricate and will instead require that they positively plan for their area. This is vital to ensure future generations are provided with homes, particularly important as current house building figures are at the lowest level since records began in the 1920s.
“The Framework will offer employment prospects to those currently out of work alongside reassuring communities as to where future growth will occur and will objectively assess development needs to assure they are met in full.
“The process of developing the Framework has been hugely controversial, as the draft NPPF was essentially ‘hijacked’ by environmental groups and subject to a negative press. However, since the introduction of Town Planning in 1947, there has always been a requirement to strike the correct balance between development and environmental considerations. The UK has a good track record to date in this regard and there is no doubting that these judgments cannot continue to be reached.”
John Webber, Colliers International’s Birmingham-based national head of rating, said: “The Chancellor has once again missed out on the chance to make a vital reduction in business rates. Following his announcement last year of a 5.6 per cent increase, the fall in inflation means that businesses still face a significant rates burden. Had the Chancellor worked his numbers out on yesterday’s RPI of 3.7 per cent, businesses would have been looking at a 34 per cent decrease in rates – a huge difference.”