Responding to Chancellor George Osborne’s announcement that he intends to cut the rate of Corporation Tax, the ALMR has welcomed moves to cut costs for businesses but has warned that further support for businesses is needed following the referendum.
ALMR Chief Executive Kate Nicholls said: “The decision to cut Corporation Tax is a welcome signal of intent during a period of instability, but wide scale measures to cut costs for businesses are still needed in order to safeguard jobs and investment.
“Any cut in Corporation tax will not take effect for three years and will only deliver a benefit for those businesses making a profit. Meanwhile, we have three years of uncertainty for employers with no certainty of any benefit for some.
UK businesses, including those in licensed hospitality, are looking at a period of turbulence post-referendum and we need an urgent reassessment of unnecessary business costs and legislative burdens. Continued reform of businesses rates and postponement of the Apprenticeship Levy would ensure that the sector is in a healthier position over the coming months and weeks.
“It is encouraging to see the Chancellor working towards stability for the UK economy, but we will need to see a lot more done if businesses are to grow during this period of turbulence.”