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Autumn statement brings cash for 8,000 new homes

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The government has committed £96 million to build more than 8,000 new homes in the East of England in the Autumn Statement. The statement also announced £12.3 million to return over 900 empty homes to use in the East and South East, £127 million to link the A5 to the M1 near Houghton Regis and that Cambridge is to be in the second wave of super-connected cities.

According to Derek Carr, partner employment tax and head of property business development team at PEM, local property developers and property owners will be pleased because properties that are standing empty due to the credit crunch and lack of bank funding could soon start to be developed.

Commenting on the statement he said: “There are a few positive measures to help local businesses. Small businesses will be relieved to hear that the small business rates relief scheme, which is specifically intended to help such businesses, will be extended to April 2014.” He added that it was great news that Cambridge is to be in the second wave of super-connected cities.

Otherwise the Autumn statement drew a mixed response from business groups in the region.

Pippa Bourne, regional director ICAEW, said: “The Chancellor has gone for growth and wants to show that the UK is open for business. The reduction in corporation tax will be welcome news for larger companies and will encourage inward investment.”

The increase in the Annual Investment Allowance, will be good news for smaller businesses. The Chancellor will hope that the new measures will impress the 67 per cent of ICAEW business members who are not confident that the Government’s Plan A for the economy will deliver growth this Parliament.”

Encouraging investment

Stuart Wilkinson, head of tax at KPMG in East Anglia said :“Businesses, particularly in the SME sector will welcome the Chancellor’s attempts to keep it simple with very little tinkering to the tax environment and yet several measures to encourage investment in the UK.

“Reducing the corporate tax rate to 21% from April 2014, maintaining business rates relief and a 10 fold increase in the annual investment allowance, should encourage capital investment particularly for small and medium sized businesses, and offer some breathing space as the economy continues to struggle.”

Business bank

John Dugmore, chief executive of Suffolk Chamber of Commerce said: "Today's Autumn Statement brought welcome news for business.  A further 1 per cent cut to corporation tax in 2014, the cancellation of the 3p per increase in fuel duty and the confirmation of the British Business Bank to be launched with £1bn to help smaller firms to access finance will make a real difference."

"Firms across Suffolk and the East will be frustrated that despite continued strong and robust cases being made for the A14 the Government continues to fail to recognise how important it is to address this major infrastructure issue."

Last Updated ( Friday, 11 January 2013 10:12 )