'Simple’ Budget tops wishlist for businesses
Businesses are looking for stability and certainty from the Budget, rather than sweeping reform, according to business advisory firm KPMG.
KPMG’s Head of International Tax and Tax Policy Melissa Geiger argues that the Chancellor’s expected focus on delivering key election promises and deferring major announcements to later in the year will offer some much-anticipated, albeit brief, stability to the UK tax code.
Melissa Geiger, head of international tax and tax policy at KPMG in the UK, said: “Chatter before Budgets is typically awash with speculation over what businesses might want served up from the Chancellor. But, after such a long period of disruption and uncertainty, a Budget of simple fare would be most heartily welcomed by businesses and possibly most taxpayers too.
“A simple Budget doesn’t have to be without flavour. Business leaders will want further clarity on policies that are already on the agenda, including plans to reform Business Rates, the introduction of the Digital Services Tax and adjusting the National Insurance threshold.
“They will also keep a close eye on the direction that any reviews take on pensions tax relief and inheritance tax after repeated calls to overhaul complicated structures. Businesses will also look for any insight into the Treasury’s longer-term plans to make sure that employment taxes reflect modern ways of working and the general tax system is geared towards supporting environmental objectives.
“If the Chancellor is tempted to make any significant reform, many will want to be engaged and see early and comprehensive consultation with stakeholders. Otherwise, he risks upsetting an expectant clientele before all three fiscal statements are served this year.”
Budget flavour – businesses could see further clarity and reviews on some key policy areas:
Budget staples – expected policy changes:
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