Commenting on the Chancellor’s Spring Budget, Emma Baylis, managing director at Interpath Advisory, said:
“The Chancellor delivered today an ‘everything, everywhere, all at once’ Budget, seeking to target post-Brexit regulatory freedoms and tax incentives at sectors including Life Sciences, Nuclear and the Film and Creative Industries, as well as introducing measures to create 12 Investment Zones around the UK.
“Coupled with measures to get more working-age adults back into the workplace through help with childcare, disability benefits and targeted help for the over-50s, the Chancellor is seeking to tackle the conundrum of UK productivity.
“Notably, the Chancellor went further than predicted in two areas.
“First, a new version of the capital allowances ‘super-deduction’ is to be introduced, providing 100% relief on most expenditure from 1 April 2023 – although it should be noted this measure is of most benefit to large business, as most SMEs already benefit from the £1m Annual Investment Allowance.
“Secondly, the Lifetime Allowance for pensions was scrapped altogether rather than being raised as had been predicted. Again, this benefits a small – but potentially significant – part of the workforce who may now be incentivised to return to work or stay in work longer.”