Press release: Giving Furness Businesses A boost

Simon Fell has welcomed a package of measures to help give local businesses a boost post Brexit.

The measures announced today, which will help thousands of the 578,700 businesses across the region, include a business rates cut, with the burden of business rates reduced as part of a fundamental review, a construction tax cut, a research tax cut and a jobs tax cut.  121,000 business in the north west already benefit from Employment Allowance and today’s announcement will mean another tax cut for half a million businesses across the country.

Welcoming the news, Simon said:

“People from across Furness have told me that they want this uncertainty over with - it’s holding up investment, recruitment, and funding for future development. We need to move on and get Brexit done so that our local schools, employers, and public services have certainty and security in their plans. 

“That’s why voting Conservative on 12 December is so important. Any other party will mean more dither and delay, further uncertainty, and a real risk to jobs and wages. Only the Conservatives have a deal that’s ready to go that will move Barrow and Furness, and the country, forwards.” 

Rishi Sunak, Chief Secretary to the Treasury, added:

“Under a Conservative government, the number of businesses in the North West has increased by 142,300 since 2010. Our announcement today will further unleash business potential across the region. 

“A Conservative majority government will ensure that businesses can move forward with confidence. We will get Brexit done with the Prime Minister’s fantastic new deal so that we can move on with other priorities – like unleashing the huge potential of British business, supporting enterprise and improving skills.

“The alternative is an anti-business Corbyn-led government propped up by Nicola Sturgeon and the SNP and the chaos and uncertainty of another two referendums.” 

ENDS

Notes to Editors 

A Conservative majority Government will take action to support business by:

• Reducing the burden of business rates. Business rates are one of the top concerns of British businesses so a Conservative majority Government will launch a fundamental review at our first budget, consulting widely. We will reduce the overall burden of business rates as part of this review.

• Raising the Employment Allowance from £3,000 to £4,000. Employers pay Class 1 National Insurance Contributions on their employees’ earnings. The Employment Allowance is currently claimed by over 1 million employers to reduce their employer NICs bills by up to £3,000. The next Conservative Government will increase the Employment Allowance to £4,000, which will provide a tax cut of up to £1,000 for more than half a million businesses. This will amount to almost a half a billion-pound tax cut for small businesses.

• Increasing the Structures and Buildings Allowance from 2 per cent to 3 per cent. We will increase the SBA to 3 per cent to increase on the tax relief on the purchase, building or leasing of a structure, providing a significant boost to business investment. This is a permanent increase in the relief and firms of all sizes will benefit. Industries with a faster turnover of buildings such as in agriculture will benefit in particular.

• Increasing the R&D tax credit rate from 12 per cent to 13 per cent. It is essential that we boost private sector research and development investment in order to raise productivity over the medium and long term. Around 7,000 claims for R&D credits were made under the Research and Development Expenditure Credit scheme in 2016/17. Raising the relief rate from 12 per cent to 13 per cent will boost manufacturing and professional, scientific and technical services sectors in particular. We will also review the scope of R&D tax credits to ensure they are fit for the future, including whether areas of investment such as cloud computing and data should be within scope.

• A billion pound boost to business. The cumulative benefit to businesses of the changes to the Employment Allowance, SBA and R&D tax credits will be approximately £1 billion in 2022/23.