Business groups and companies in the region responded generally positively to the tax changes introduced by the Chancellor in last week’s Autumn Statement.
Tough decisions
Richard Tunnicliffe, CBI East of England director, said: “With tough decisions to be made, the Chancellor was right to prioritise ‘game-changing’ interventions that will fire the economy. “While the move on National Insurance will give hard-pressed households some much needed breathing room, making full capital expensing a permanent feature of the tax system can be transformational for accelerating growth and improving living standards in the long-term.
“Helping firms to unleash pent-up investment is critical to getting momentum into the economy. Making full expensing permanent will give firms the stability they need to press on with decisions on investment whilst keeping the UK at the top table internationally for investment incentives.
“Moves to speed up planning and grid connectivity should also bolster business confidence to invest in high growth areas like green technologies, renewable energy and advanced manufacturing.”
‘Giveaways for growth’
Peter Harrup, tax partner and head of BDO LLP in East Anglia, said: “In the lead up to this statement, the chancellor had warned that tax cuts were ‘virtually impossible’ but the mood music changed significantly in the last week or so, and for business, this has arguably been a more upbeat announcement than anticipated.
“The “giveaways for growth”, such as extending full expensing on investments in IT, machinery and infrastructure, have responded to demand from businesses for a greater focus on creating economic certainty over the long-term. However, with a General Election looming, it remains to be seen whether today's announcements will be enough to create widespread confidence and incentivise business investment.
“Beyond the headline tax changes, businesses were calling for wider support to ease their day-to-day burdens including further investment in HMRC to improve service levels and measures designed to simplify the tax system. Many may be disappointed that the chancellor didn’t go far enough in this regard.
“Those businesses investing in freeports will also be buoyed by the news that the related tax breaks will be extended until 2031.”
Welcome for freeport tax relief extension
Steve Beel (right), chief executive of Freeport East, said: "Freeport East welcomes the government's decision to extend the window for freeport tax reliefs to ten years, coupled with an additional £150 million in funding. This move underscores the crucial role of freeports in economic growth and job creation and unlocking opportunities for our coastal communities.
“A number of other announcements, such as the £970 million Green Industries Growth Accelerator, legislation to allow the Crown Estate to invest more in offshore energy and changes to the grid connection process will all play to Freeport East’s strengths in attracting green investment.
“The East of England is already a clean energy powerhouse and we are keen to ensure we build on this platform to create more jobs and growth and position UK businesses to succeed overseas.
“Targeted tax incentives at our sites in Felixstowe, Harwich, and Gateway 14 are crucial to attracting new investments, while the extension will further boost benefits for the Freeport East local area, such as skills development, improving local facilities, and supporting growth in key sectors like clean energy. It will help bring forward transformational projects such as our Bathside Bay Green Energy Hub in Harwich, a unique asset for supporting the UK’s aspirations on offshore wind.
“We look forward to further detail being provided in the December release of the Freeports Delivery Roadmap by the Department for Levelling Up, Housing, and Communities, and that we can maximise this extended opportunity.”
Boost for key industries
Rechenda Smith, managing director of Norwich-based Nurture Marketing, said: “All-in-all the measures revealed in Jeremy's budget is good news for businesses in our region. I was personally pleased to see an extension to small business rate relief, a national insurance rate cut and the ‘full expensing’ business tax break being made permanent. I would have liked to see an overall reduction in the corporation tax rate and investment into the creative industries. However, it was encouraging to see key industries in East Anglia set to see a boost include tourism and hospitality, retail, manufacturing and engineering, and clean energy. The less tax they pay, the more money they have available to invest in marketing, innovation, development and growth."
Backing for extension to the full expensing capital allowance
Ross Cracknell (right), managing director of Ipswich-based print specialists Evolve Business Solutions, said: “The budget changes outlined in the Autumn statement today is great news for businesses. It was particularly good to hear that the government is encouraging businesses to continually invest in infrastructure that will help them grow, including IT equipment and machinery.
“By making the ‘full expensing’ business tax break permanent, for every £1 that a business invests in IT, machinery and equipment, they can claim back 25p in corporation tax. Companies can do this in one go as opposed to having to offset the cost against corporation tax over a longer period.
“Investing in up-to-date equipment gives businesses the best chance of increasing productivity and revenue, as well as helps to boost a company’s asset value. We were pleased to see this important benefit continue to be offered to the business sector.”
Tech and digital skills programme to be rolled out
Meanwhile, Made Smarter, a programme helping SME manufacturers access technology and digital skills, is to be rolled out to the East of England. The government has committed to expanding the Made Smarter Adoption Programme nationally to all nine English regions in 2025-26. It means hundreds of thousands more SME manufacturers will get access to technology advice, leadership, and skills training, as well as grant funding for digital internships and technology projects.
