Thames Valley: Stability, security and social mobility are key priorities for this year’s Budget, says KPMG

Reporting on the measures that businesses in the region want to see included in the forthcoming Budget, KPMG highlights stability, security and mobility as top priorities.

David Ashworth, head of tax at KPMG in the Thames Valley, said: “Businesses have told us that having access to a stable, affordable, energy supply is a pressing concern for them and could influence their investment decisions in the long term. 95% of firms we surveyed said they are concerned about the costs of energy, while 90% reported they are concerned about future security of supply.

“It is clear that businesses need reassurance that action will be taken to renew the UK’s energy supply and create a better energy mix. While this Budget will only take us up to the next parliament, businesses will still want to see the foundation for the UK’s future energy strategy laid down.

“At a country and business level we need to encourage investment in infrastructure, to ensure we are able to compete on the global stage. The removal of the industrial buildings allowance a few years ago has meant that the UK does not always compare favourably to other countries for investors. We need to remove barriers to investment and encourage the renewal of our structures and buildings. Helping businesses to make that initial investment is an important first step in bringing our infrastructure up to scratch.

“The issue of youth unemployment rests heavy on all of our shoulders and any steps to help young people find work, and begin a career they can enjoy, would prove a real social game changer in the long term. Making it easier for businesses to employ young people would play an important part in this, for example offering tax breaks to those taking on under 25s. Youth unemployment is an issue that could impede the social mobility of a generation if it is not tackled.

“Finally, we need to go out and sell our country as a destination where businesses can thrive. As we enter the run up to an election, overseas investors will be looking for assurances on a continued commitment to keeping the UK’s corporation tax rate and regime competitive globally. This would send a clear signal that Britain is open for business.”