BDO Midlands Budget comment

Added by Love Business East Midlands | 15 March 2023

Kyla Bellingall, Partner and Regional Managing Partner in the Midlands at BDO LLP, said:

“The Budget answered some of the calls from Midlands businesses, as the region fared relatively well as part of the overall ‘levelling up’ agenda. As part of our bi-monthly survey of 500 mid-sized businesses, more than a quarter told us that they wanted to see tax incentives in the region. With East and West Midlands set for an opportunity to bid for funding for a new Investment Zone, this could come to fruition. 

“Businesses were also hoping for a roadmap to reduce corporation tax rates. Instead, the Chancellor said that companies could offset 100% of investment in IT, equipment, plant, and machinery in the UK against taxable profits, stating that it’s the most generous capital allowance scheme of any advanced economy. That said, there are practical barriers as businesses still grapple with supply chain challenges. As a result, people may struggle to get hold of the kit they want to invest in.

“All year round, businesses tell us that access to skills is their biggest challenge. Hopefully, new initiatives and incentives will open up a deeper talent pool by attracting returners and working parents back to work. Support with childcare costs will also be well received by business leaders as a way of helping employees with the cost-of-living crisis. Around one-in-ten Midlands businesses have already been trying to plug this gap, by providing other workplace benefits such as support with childcare costs for employees.”

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