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BUSINESS ROUND TABLE: Facing austerity?
A NEW government, a new era of austerity.
George Osborne's first Budget promised to be firm yet fair...but how does it shape up for the region's business community?
Issues were debated by local business leaders at a Round Table event hosted by chartered accountants and business advisers Hart Shaw at their offices at Sheffield Business Park.
The event, held in conjunction with The Star, sought the opinions of key business and professional and advisory figures.
Chaired by The Star's Industrial Editor, Bob Rae, the Round Table heard the views of:
- Steve Vickers, Tax Partner, Hart Shaw
- Chris Sellars, Head of Corporate Finance, Hart Shaw
- Holly Dobson, Employment Law Partner, Wake Smith & Tofields Solicitors
- Steve Tweedle, Senior Partner with responsibility for business
development in the Yorkshire region, Yorkshire Bank
- Simon Wright, Director, Banner Jones Solicitors
- Max Kennedy, Partner, Ashton Morton Slack Solicitors
- Gerry Quinn, Founder, Vulcan Engineering
- Graham Royle, Chairman and Chief Executive, GRI Group
- David Grey, Group Managing Director, OSL Group
- Barry Cunliffe, Chief Financial Officer, ITM Power
Members of the panel gave their views on the recent Emergency Budget and looked at ways in which the new coaltion government could help business to grow in the future.
Hart Shaw Tax Partner Steve Vickers said: "The discussion proved to be an excellent opportunity to take time out and consider the impact of the Budget in the wider context of the region's economy.
"There were a range of sectors and businesses represented at the table, including four from different manufacturing companies. What became clear as the discussion developed was that the issues facing all types of local business seem to be pretty similar.
"Cutting red tape and simplification were recurring themes throughout, in particular on trading overseas, sourcing government funding and of course taxation.
"The panel felt that the process and the number of organisations involved in disseminating central funding from its source to its ultimate recipient needs radical overhaul. It was felt that this would help to ensure wastage along the way would be kept to a minimum, that the funding would be better targeted at those who need it, and importantly, that the funds would then be put to best use; namely the advancement of the region, whatever the sector concerned.
"On budget tax measures, the panel's opinion was that in the context of the nation's deficit, and the need for central government to raise cash, it was a budget which may help local businesses, large and small.
"In particular the raising of the Employers' NI threshold, NI Holidays for new starts ups and the reduction in Corporate Tax rates were received as positive moves, to aid the creation of jobs and the future survival, and turnaround of local businesses. Less encouraging were the reductions in Capital Allowances.
"However, with tax changes being only 23% of Mr Osborne's measures, the other 77% being spending cuts, the major concern of the panel was the region's reliance on the public sector for jobs and the effect cuts would have on local unemployment.
"The panel was worried that the private sector would not be able to create sufficient new employment to "mop-up" the inevitable wave of out of work public sector workers. A further concern was the knock on effect of withdrawal of public sector money from private sector initiatives. The recent news concerning Sheffield Forgemasters being one example.
"Overall, it was cautious "thumbs-up" for business tax measures, but tempered with hope that spending cuts would be targeted at improving central and local government efficiency rather than stifling innovation, success and ultimately future job creation."
See Business Monthly for full coverage of the discussion, in today's Star
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Weather for Sheffield
Wednesday 08 February 2012
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