National Radio Broadcast Highlights North East Business Issues
National Radio Broadcast Highlights North East Business Issues
After taking part in the Budget Special for the BBC Radio Four Programme ‘You and Yours’, Patricia Arnold of Patricia J Arnold & Co Chartered Accountants in Hexham was asked to create a feedback session with some of her clients. Delighted to help highlight the concerns of North East businesses, Patricia arranged a second programme with participants from Deli at No 4, Orchard House Veterinary Practice and Border Park Builders giving their reaction to the budget and their views on the economic outlook for the region.
The businesses involved had slightly different views according to the industries in which they operate but there was agreement across the board that what is badly needed to get the economy going is more consumer confidence.
Patricia expanded, “Although many of the local businesses felt the budget had some good ideas, the overall reaction was that it simply didn’t go far enough. In addition, as many of the measures do not come into effect for a considerable time or have not been fully explained, there is a feeling of being in limbo which is not creating the confidence we need.”
As owners of a relatively small business, Deli at No 4 was pleased that the government was offering employers help by reducing the level of National Insurance contributions and offering the opportunity to take a holiday from NIC payments. However in common with many businesses, they believe the government could help them further by reducing VAT. It has been suggested that the Chancellor could use the General Anti Avoidance Rule (GAAR) to create a level playing field for all businesses by making the ubiquitous 20% off for cash unacceptable. Banks also need to be encouraged to play their part, being involved in tourism, many North East businesses are heavily reliant on seasonal trade and need their banks to understand this when extending lines of credit.
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Page. 2 – National Radio
Orchard House is too big to benefit from the NIC saving but agreed and commented further on problems with bank funding and confidence. Issues such as the impact of insurance claim times on business debtors and cashflow implications are also holding back expansion.
One of the keys to getting the economy moving is to get the property industry back to where it was before the current economic decline. It’s not just new homes that are not being built; during the broadcast Border Park Builders Ltd told listeners, that a survey by the Federation of Master Builders suggests work on extensions is down by 5%. Boosting our much needed housing stock could create as many as 700,000 jobs and significantly increasing tax revenue to the HRMC.
Planning problems and a lack of clear guidance to planning officers is adding to the problems facing the building industry. Patricia herself has personal experience of this having waited 2 years for permission to restore a handsome Edwardian property close to Hexham town centre for business expansion. Although she was prepared to finance her future in Hexham, the investment which was badly needed by the local economy ended up being considerably delayed.
The house loan scheme to help first time buyers announced in the budget was supposed to help the industry. However as it doesn’t come into effect for twelve months as with the announcement on changes to the NIC, the panel felt is may actually have been better not to have announced it all as it is causing people to wait rather than to take action. Will the NIC really help or just subsidise or even delay jobs that would have happened anyway?
Patricia concludes, “It seems that apparently 60% of us in business feel that our businesses will be in a better place in 12 months’ time. Whilst only 20% of us feel that the economy as a whole will be in a better place. This is not consistent and demonstrates the disastrous economic impact of lack of confidence and given that lack of confidence, even if we felt our business is going to do well, the entrepreneurs amongst us will not take the risks we need to make the economy grow again.
ENDS –
PR & Media Enquiries to: Barbara Huddart- Glendale PR T. 01668 283044 M. 07980 850394
Editors Notes
Based in Hexham, Patricia J Arnold & Co Ltd was founded in 1985 to provide expert accounting and taxation advice with a specialist team which combines professional qualifications with practical experience. The firm provides tailor-made services to individuals, partnerships and small to medium-sized businesses throughout the North East and further afield.
For more information please contact Patricia J Arnold & Co Ltd Tel: 01434 606624 Email: [email protected] or visit www.pjarnold.co.uk
