Coronavirus is dominating everything, but the response isn't universal. Our Government is taking a different tack to most countries by not employing strong social distancing.
Many disagree with this approach, including former health secretary Jeremy Hunt, who said: “I think it is surprising and concerning that we’re not doing any of it at all when we have just four weeks before we get to the stage that Italy is at.”
I’m not qualified to comment on whether or not our Government is doing the right thing, but it’s fair to say that its increasingly vocal critics will only get more so if it turns out to have been the wrong approach.
Mitigating the economic impacts of coronavirus was understandably the focus of Chancellor Rishi Sunak’s Budget. As we suggested prior to the Budget, business rate rebates and time to pay schemes were put in place by the Chancellor.
Our Research Director Sam Dumitru has written a concise Policy Update on the Budget, which I recommend you read and share with other business owners. It covers all the main announcements and how they might impact your business.
Many business owners were concerned about Entrepreneurs' Relief being scrapped. It wasn’t, but the lifetime limit was scaled back from £10m to £1m. This means that it won’t really impact the Enterprise Management Incentive (something that we were particularly concerned about), but as Chris Sanger argues in the letters of the FT, the policy was about keeping successful 'rainmakers' in the UK, "so that they go on to start up more new businesses or become business angels, fuelling more growth and employment in the UK.”
And as I argue in the Guardian: “Entrepreneurs’ Relief is widely understood and cited as part of a package of incentives that helped [foreign-born entrepreneurs] decide to start their business in the UK, or move it here.”
There’s certainly an argument about whether there is a more efficient way to get what we want than a blanket reduction in Capital Gains Tax, but this cut doesn’t get us anywhere closer to that.
Patently obvious
Our new researcher, Dr Anton Howes, wants to know if there are any patents in your sector/industry that you feel currently hold back your industry. If something springs to mind – past or present – drop him an email.
Unlocking growth
I don't want to bang on about it, given you probably already know all about the Unlocking Growth report we released this week with the Enterprise Trust. But just to update, it was covered in The Telegraph, here and here, City AM, and CapX.
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