IFB responds to the Autumn Statement

Chancellor Philip Hammond delivered his first Autumn Statement today.  Below you will find a brief update on some of the key policy proposals, alongside reaction from the IFB, and details on how you can share your views on the Chancellor’s announcements.

What Was Announced?

Measures designed to improve productivity and boost growth were at the fore of the Chancellor’s announcements.  These included:

• A new National Productivity Investment Fund to provide £23 billion of additional spending
• HM Treasury will lead a review to identify barriers to access to long-term finance for growing firms
• A review of the tax environment for R&D to look at ways to build on the introduction of the ‘above the line’ R&D tax credit to make the UK an even more competitive place to do R&D
• Doubling UK Export Finance capacity
• £400m into venture capital funds through the British Business Bank to unlock £1bn in finance for growing firms
• £1.8bn from Local Growth Fund to English regions
• More than £1bn for digital infrastructure and 100% business rates relief on new fibre infrastructure
• £2.3 billion for a new Housing Infrastructure Fund
• £390 million investment in future transport technology
• £2 billion more per year in research and development funding by 2020-21

Other announcements included:

• Commitment to cut Corporation Tax to 17% by 2020
• Government recommitted to the Business Tax Roadmap
• £400m into venture capital funds through the British Business Bank to unlock £1bn in finance for growing firms
• £13 million to support firms’ plans to improve their management skills
• Rural Rate Relief to be increased to 100%, "giving small businesses a tax break worth up to £2,900"
• From April 2017, most salary sacrifice schemes will be subject to the same tax as cash income
• Insurance Premium Tax rises from 10% to 12%

The Chancellor also announced the end of the Autumn Statement.  From 2017 the Budget will be held in the autumn, with a shorter statement in the spring.

You can find out more detail on all the announcements here.

IFB Reaction

Giving her initial reaction to the Autumn Statement Elizabeth Bagger, IFB Executive Director, said: “Family businesses are fantastic incubators of entrepreneurial and innovative talent.  They are keen to continue to invest, grow and create jobs.  Our members will be pleased to see the Chancellor focusing on measures to improve productivity and stimulate investment across the country, and to support firms who want to start exporting.

“Long term thinking is at the heart of everything family businesses do, and access to appropriate long term finance has been a challenge for some family firms.  We are, therefore, pleased to see the Government announce a review into Patient Capital and long term funding options, and we will work to make sure the needs of family firms are recognised in that.”

If you would like to know more about IFB's representation work and how you can get involved, please email our Communication Director, Fiona Graham at fiona.graham@ifb.org.uk.