3 March 2021
Amanda Tickel, head of tax policy at Deloitte, comments on the Chancellor’s statement:
“It was widely predicted the Chancellor would pursue corporate tax rises in this Budget – but no one expected the sheer size of the rise from 19% to 25%. This steep, overnight rise planned for two years’ time, will take many by surprise and is a break from modern tax policy.
“The new ‘Super Deduction’ for investment is a potentially huge benefit for business and could massively stimulate economic growth. That said, it takes effect in just a few weeks’ time and does rely on business being able to accelerate investment plans now.
“Today’s COVID-19 support and investment measures will cost £70.5bn in the period up until 2026, while the total take from new tax raising measures will bring in £69.5bn over the same period. However, there is a timing difference here. 99% of the support and investment costs will be incurred by April 2023, however the Treasury won’t see the majority of the increase in tax revenues until after April 2023.
“Today was a clear indication that the government is choosing to recharge and grow the UK economy in the hope of balancing the books through organic tax take, rather than through tax raising measures which could risk stifling the post pandemic recovery.”
Daniel Barlow, managing partner for regions, Deloitte, added:
“In my 25 years of following budgets this was the most regionally-focused I can recall.
“For me, the most interesting aspect of the Freeports initiative, and the locations announced today, is that individual locations will have a slightly different economic focus. Each will apply favourable arrangements for customs duties, other tax reliefs and support for regeneration and innovation to support the particular industries or segments of the economy that the Freeport is seeking to promote. As a tax advisor as well as a regional leader it’s great to see tax being used imaginatively as one of the levers to promote regional growth.
“The success of Freeports will depend, in part, on how quickly private sector businesses understand the objectives and focus of each Freeport and work out how they can contribute to them.”
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Deloitte has a range of spokespeople available to comment on today’s statement. They can be reached on 020 7007 3333 or 0207 303 5054 or one of the following numbers:
• Ian Stewart – chief economist (07789 036 944)
• Amanda Tickel - head of tax policy (07920 270 964)
• Rachel McEleney - personal tax (07826 891 752)
• Zubin Patel – corporate tax (07795 968 483)
• James Warwick - employment tax (07768 178 264)
• Gareth Pritchard – indirect tax (07920 006 216)
• Mike Barber – climate change/sustainability (07920 270 964)
• Jonathan Evans – stamp duty (07818 535 803 /07789 036 944)
• Gerry Biddle – business rates (07785 381 369)
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