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'Give us what we want, George!': Kent firms in plea to Chancellor George Osborne on Budget day

Chancellor George Osborne on Budget day
Chancellor George Osborne on Budget day

by business editor Trevor Sturgess

Chancellor of the Exchequer George Osborne stands up in the House of Commons at 12.30pm today with a bulging wish list ringing in his ears.

With virtually nil growth, the UK losing its prized triple-A rating, rising inflation and wage freezes, he is in an uncomfortable place - with many critics calling for his head.

But Mr Osborne (pictured right) will tough it out amid a welter of disappointing data, giving with one hand and taking back with another in a Budget set against a bleak economic backdrop.

There will be little room for generous giveaways, apart perhaps to working parents for childcare costs.

Kent firms are calling for a cut in employers' National Insurance contributions in a bid to boost the economy.

Kent-based McBrides Chartered Accountants said a cut in employment costs would boost confidence of businesses and consumers.

Tax partner Terry Baldwin, from Tonbridge, said cashflow was the biggest concern of many clients.

"Making sure that bank finance is more readily available, at realistic prices is crucial. We also need to see an increase in the amount of funds delivered to businesses through government backed finance initiatives."

The Country Landowners Association (CLA) called on the Chancellor to cut value added tax on rural tourism from 20% to 7%.

It accused the government of allowing investment in the UK's sixth largest industry to slide, and driving it almost to the bottom of the world league on
tourism taxes. The UK ranks sixth in the world as a destination but 135th out of 139 on taxes applied to tourism.

CLA south east director Robin Edwards said visitors to the county were taxed "to the hilt" and there had been a significant failure at national level to provide strategic leadership with government spending on tourism falling by 25% between 2001 and 2011.

What do you think? Join the debate by adding your comments below
What do you think? Join the debate by adding your comments below

VAT was "prohibitively high" and made a holiday here far more expensive than elsewhere. The CLA is also calling for any plans for a future "bed tax" – a charge levied on a per person per night basis – to be ditched describing it as a short term financial fix that would do long term damage to the industry.

Kent B&B owner Maggie Berry said: "Small businesses, such as bed and
breakfast accommodation providers, put billions into the rural economy supporting local employment, foods and attractions.

"In tough economic times we need to be allowed to work to a level playing field with the rest of Europe by bringing down the VAT rates for tourism.

"The government should also be reducing Air Passenger Duty and making it
easier and cheaper for overseas visitors to get travel visas."

The Federation for Small Businesses in Kent and Medway is calling for better access to finance, simpler taxation, an enhanced National Insurance contributions holiday, more resources for new exporters, more support for enterprise, lower energy prices, and greater access to public sector contracts, with prompter payment.

For political analysis on how the Budget affects Kent, follow our political editor Paul Francis on Twitter - @PaulOnPolitics.

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