Government support for self-employed individuals and reductions in stamp duty for the hospitality sector fails to address the underlying issues

Headline: Chancellor's Autumn Statement: Mixed Reactions from Business Sector and Investors

The Autumn Statement, presented by Chancellor Rishi Sunak, has sparked a range of reactions from various sectors of the economy. While some are relieved that increases to capital gains tax and a reduction in pension tax relief have not materialized, others have expressed concerns about the impact of certain measures on their businesses.

Tsewang Wangkang, co-founder and CEO of Embargo, welcomed the 50% discount to business rates and the simplification of alcohol duty, stating that these measures will help many businesses in the hospitality sector as the recovery from the pandemic is far from over. However, Wangkang also expressed concern about the uncertainty surrounding the Government's 'Plan B' restrictions and rising operational costs, which he sees as threats to the recovery and growth of many hospitality businesses.

Seb Maley, CEO of Qdos, shared similar sentiments, stating that the recently announced social care levy, corporation tax changes in 2023, and IR35 reform will negatively impact freelancers, contractors, and small business owners. Meanwhile, Ben Crampin, partner at Optimal Compliance, expressed concern about the distribution of additional funding for R&D reliefs, fearing it may benefit large corporations over SME businesses.

The budget also included investment in skills, infrastructure, and better access to finance for economic recovery. Shevaun Haviland, Director General of the British Chamber of Commerce, welcomed much of the budget for business communities across the UK. However, Julia Kermode, founder of Nantwich-based IWork, criticized the budget for not providing enough support for self-employed people and small business owners, particularly those who have been excluded from COVID financial support.

The government's decision to freeze income tax thresholds and increase national insurance announced earlier this year continues to erode household incomes in real terms. Nick Ritchie, Director of Wealth Planning at RBC Wealth Management, stated that the Chancellor's statement has less focus on pensions and more on consumer spending. Seb Maley also mentioned that the Chancellor's self-congratulatory remarks about the government's treatment of entrepreneurs are unconvincing.

In other news, the government did not provide specific financial support in the announced budget for leasing businesses related to electric vehicles, nor for private customers. This decision has been criticized by the Zentralverband Deutsches Kraftfahrzeuggewerbe (ZDK), as the new electric vehicle incentives focus only on commercial buyers, excluding leasing and private individuals. The cut to business rates, while welcomed, will not benefit those who work remotely and do not need premises.

As businesses continue to face problems such as supply chain costs and disruption, labour shortages, price rises, soaring energy bills, and taxes, individuals are advised to seek advice to understand the impact of rising inflation and interest rates on their financial goals.

Government support for self-employed individuals and reductions in stamp duty for the hospitality sector fails to address the underlying issues