In response to the Chancellor’s Spring Statement, Sam Dumitriu, Research Director at The Entrepreneurs Network said:
“There is no good economic argument for hiking taxes on employment today only to cut Income Tax two years later. In effect, the Chancellor has raised taxes on work and cut them on unearned income.
“If the Chancellor wanted to properly back businesses and workers, he should have ditched the Health and Social Care levy altogether.
“Sunak signalled big changes to the tax system in the Autumn. There is a pressing need to fix the way investment is taxed. When the super-deduction expires Britain will have one of the most punishing tax treatments for investment in the OECD. Allowing businesses to fully deduct investment costs upfront would be a good start.
“The Chancellor’s pre-Statement rhetoric around R&D Tax Credit has caused concern among startups and innovators. Entrepreneurs then will be relieved that the Chancellor floated making R&D more, not less, generous in Autumn.”