The UK Budget 2024 has become a point of discussion across various sectors, highlighting tax changes and funding allocations.
- The budget introduces £40bn tax rises, marking the largest increase in decades, gaining approval for its sustainability from the International Monetary Fund.
- Caroline Norbury emphasizes the government’s commitment to industrial strategy and regional investments, aiming for growth in cultural and creative sectors.
- Sam McArthur welcomes support for investment schemes like EIS and VCTs, noting their role in aiding innovative businesses in northern England.
- Paul Bainsfair raises concerns about rising operational costs for agencies due to changes in Employer National Insurance.
The UK Budget 2024 outlines significant fiscal shifts, foremost being a £40bn tax rise, the largest in a generation. This increase has been welcomed by the International Monetary Fund for its sustainability, signifying a cautious yet vital step towards balancing economic stability and growth aspirations.
Caroline Norbury, Chief Executive of Creative UK, expresses optimism regarding the government’s direction, which includes industrial strategy and increased investment in the cultural sectors. She highlights the expansion of Creative Careers and investments in Crown Works Studio as positive steps. Moreover, she urges continued fiscal incentives, advocating for culture and creativity as key economic and social contributors.
Sam McArthur from Praetura Investments acknowledges the Chancellor’s support through Enterprise Investment Schemes and Venture Capital Trusts. These measures provide valuable tax advantages and aid high-growth, innovative UK businesses. McArthur is particularly encouraged by regional economic growth initiatives, such as investing in Liverpool Central Docks, which promise to empower northern enterprises.
Paul Bainsfair, Director General of the IPA, draws attention to the budget’s implications for advertising agencies, particularly the increased Employer National Insurance contributions. He cautions that this will escalate operational costs and potentially hinder growth. Additionally, he voices concern over the reduced appetite for investment due to heightened capital gains tax.
Jeff Watkins of CreateFuture observes that the budget offers prospects for the tech sector, especially with aims for increased productivity and efficiency. The maintained record R&D funding and the Skills England initiative signal positive developments for addressing the skills gap in technology fields.
Greater Manchester Mayor Andy Burnham responds positively to housing measures within the budget, supporting the drive to address the housing crisis through new council and social homes. He appreciates the government’s commitment to devolution in Greater Manchester, which promises accelerated growth and local economic improvement.
Mike Parkes from GoSimpleTax provides a mixed perspective on the budget for the self-employed. While stability in income tax rates and the freeze on fuel duties are welcomed, the lack of clarity on digital tax policies remains a concern.
Rhys Merrett from The PHA Group acknowledges Labour’s challenging role in balancing ambitious reforms with economic stability. He signifies caution over the budget’s potential impact on the UK’s standing as a global tech hub, highlighting concerns about increased capital gains tax implications for startups.
As the UK navigates its economic landscape, Budget 2024 lays the groundwork for potential growth amidst diverse reactions across sectors.
