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Mar 2021

Last Updated: 02/03/2021

Business

Harrogate district businesses await details of support in Budget

by Vicky Carr

| 03 Mar, 2021

An extension to the furlough scheme, continued business rates relief and moves to support sole traders are high on the list of hopes for Harrogate district business leaders.

Businesses across the Harrogate district are eagerly awaiting details of the support on offer to them in the Chancellor's Budget, to be announced later today.

An extension to the furlough scheme, continued business rates relief and moves to support sole traders are high on the list of hopes for local business leaders.

Mike Patterson, head of employment at law firm Berwins, said support for continuing employment was vital, as well as more support being offered to self-employed people. He said:

"The furlough scheme has been a major financial lifeline for many businesses, especially those forced to close during this lockdown, and for it to continue for another few months would be a massive boost in helping to save jobs and hopefully minimise redundancies.

"We’re also expecting the Chancellor to announce a new wave of grants for the self-employed. Although this scheme could either be scrapped or scaled back from May when lockdown restrictions are expected to start being lifted and self-run businesses could reopen.

"There are then the sole traders and company directors we act for who have had no income support from the government at all. We’re aware that the Chancellor is under pressure to introduce a support scheme for those in this category and I hope to see support for those who have fallen through the gaps of previous support – up to three million people."

Neil Addley, who runs automotive data specialist firm JudgeService, is expecting an increase in corporation tax, as well as sector-specific support. For JudgeService's clients, keeping fuel duty and vehicle tax static would help, along with measures to support the infrastructure for electric vehicles, both for business and personal use.

Mr Addley, who launched new public survey platform YourPoll in autumn 2020, said rates reductions and a short-term cut in VAT would help the high street. However, he said he felt positive about the prospects for his businesses and the local economy over the coming months:

"Demand for vehicles and for reviews is likely to rise as we emerge from lockdown. Hospitality will reopen. People have been cooped up for the best part of a year and will be happy to splash the cash."

His views were echoed by Marc Squires and Kevin Masheder of SignHub, who work with many hospitality clients. Marc said:

"It would be good to see the possibility of support extended as things are still up and down and it might be a while until businesses can return to normal later in the year.

"We work with a lot of local retail and hospitality businesses so, if the government can help get them going again with support and schemes to help them once they are back open, this will have a positive knock-on effect to other businesses that rely on working with them too, which hopefully will boost the local and national economy."

For the property sector, the biggest question is whether the stamp duty holiday will be continued. Tim Waring, head of residential at estate agent Lister Haigh, said:

“Some form of tapering would be logical as a possible three-month extension would merely be deferring the ‘cliff edge’. This is not the answer to achieve market stability.

"The property market thrives on confidence and at this time, people want more than anything to hear good news. Economic uncertainties, including Brexit which seems to have dropped out of the headlines, will not produce a thriving housing market."

Mr Waring said he also wants to see measures brought in locally to ensure town centres are able to reopen, even if some businesses do not survive. He called on Harrogate Borough and North Yorkshire County councils to work together with local businesses to bring people back to the high street, such as through lower parking charges.

Looking across all sectors, Teresa Bowe, founder of CCF Accountancy, said the government had to balance the need to maintain the economy and employment against the huge sums spent over the last year.

"I'm not expecting income tax rates to change but maybe thresholds. The government has a tricky job of clawing back the money used to support business throughout this time but they still need to balance the books.

"I expect indirect taxes to be targeted such as capital gains tax and I wouldn't be surprised if they reduced business disposal relief. There has been talk of aligning self employed taxes to employed and they have already got closer in recent budgets, but I suspect this gap will be narrowed further.

"I hope that they keep the employers rates and allowances in place and I also hope that they do not increase the rate of tax on dividends."

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Meanwhile, authorities across North Yorkshire are hoping the Budget will include announcements about investment in transport infrastructure.

Invest East Coast Rail has set out a raft of benefits, which it says is worth £11 billion to the economy, from improving the East Coast Main Line. The group has called for measures to encourage people to use the route more as lockdown is eased, saying confidence in its reliability is vital after 17 major incidents in 2018 cost the economy £46 million.

North Yorkshire County Councillor Don Mackenzie, executive member for access, who represents the authority on Invest East Coast Rail, said:

“The East Coast Mainline provides an essential transport link for North Yorkshire residents and businesses and the rail line certainly merits further investment, particularly to address capacity constraints.”

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Harrogate district businesses await details of support in Budget

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