Michael Izza, Chief Executive of the Institute of chartered Accountants of England & Wales, said: “This budget sends a signal that the UK is not only open for business but will actively encourage investment. However, it will have little immediate impact in accelerating the UK’s slow economic recovery. It is a budget for tomorrow, not for today. Ultimately, businesses still need confidence to invest in the UK’s economic future.”
“The tax simplification measures the Chancellor outlined are not the root and branch reform of the tax system that we believe is long overdue. Whilst the smallest businesses may benefit from a simpler corporation tax regime, the vast majority of individuals and companies will still have to struggle with a tax code that is already one of the most complex in the world and which continues to grow in complexity.
“Whilst offering young people grants to start their own businesses, we need to ensure they have the skills and financial acumen to make the most of such an opportunity. We need to ensure there is appropriate support and guidance available so they have every chance of success.”
John Cridland, CBI Director-General, said: “The Chancellor has also painted a clearer vision of how the UK will earn its living in the future and, by seizing the opportunity to make sure our corporate tax system is more internationally competitive, he has sent a powerful signal to companies to invest, do business and create jobs in the UK.
“An extra one per cent off corporation tax this year could make a big difference to investment intentions. Plans to reduce the top rate of tax to 45p by April 2013 will show our top and aspiring talent that this Government wants them to create wealth here.
“With many calls on the Chancellor to spend money he didn’t have, the best news for businesses is that he stuck to his guns and delivered a fiscally neutral programme.
“If businesses were looking for more, it was in the area of deregulation. For smaller businesses, things may not feel very different on the ground. It would have also have been a huge relief if the Chancellor had taken the opportunity to get rid of the currently unworkable Carbon Reduction Commitment.”
Christopher Kinsella, Acting Chief Executive of The Chartered Management Institute (CMI) responded to the Budget by saying: “CMI’s member surveys show that one of the most popular options available to the Government would be to introduce tax incentives to boost employer investment in skills. The corporation tax cut and infrastructure investment are welcome but without a similar focus on skills, we are not seeing the full picture when it comes to growth.
“Our research has shown the scale of the impact that better management and leadership can make to employers, with best-practice management development linked to a 23% variance in organisational performance.