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Budget Comment | Dr Nik Kotecha OBE

Budget Comment | Dr Nik Kotecha OBE

Dr Nik Kotecha OBE, Chairman of Morningside Pharmaceuticals Ltd


“The Chancellor had a tricky balancing act to walk, but it’s clear this year’s budget is all about supporting businesses and individuals in order to grow the economy. 

“On the one hand the UK’s borrowing has hit a staggering £355 billion, which has to be paid back at some point, whereas on the other, the economy must be placed in the best position possible to bounce back quickly once the country fully reopens.

“There was also the first nod towards the UK’s post-Transition Period future with the approval of 7 freeports around the UK. One of which is East Midlands Airport, which I am over the moon about; and this is a testament to the outstanding work of the LLEP and D2N2, which were instrumental in making it happen.

“In addition, it was great to hear the Chancellor champion the Life Sciences and the Health Sectors by announcing his intention to turn the UK into a ‘scientific superpower’, amongst a number of welcome plans to promote high growth companies in the UK. 

“Other good news for businesses was the widely expected extension to the furlough scheme, continuation of the stamp duty holiday, new grants for hard hit firms, recovery loans and VAT and business rates relief for the retail, hospitality and leisure sectors.

“There was also much needed help for communities, which will inevitably further support the economic recovery, in the form of the extension of the Universal Credit Uplift, 95% mortgage guarantees and an extra £1 billion for new Town Deals. The later will go a long way to enhancing many of the country’s beleaguered high streets.

“On the other hand a Corporation Tax rise is never good for businesses, but here the devil is in the detail, as some of the pain to struggling SMEs is offset by the so called ‘small profits rate’. This allows businesses with profits below £50,000 to stay at 19%, whereas larger businesses will move to 25% from 2023, and goes some way to protecting smaller enterprises from further economic pain.   

“The ‘super deduction’ will also go a long way to helping businesses invest in their infrastructure to increase growth, productivity and innovation.

“Overall this is a welcome budget, which is about supporting businesses and communities to turbo-charge the economy.”


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