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3 reasons the Budget is BAD news for business

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Oh dear. Not everybody’s happy

1. ON THOSE BUY TO LET REFORMS

“Reduction in tax breaks will discourage new landlords”

“Despite a phased approach, we were disappointed to hear of the reduction in tax breaks for buy to let investors as this will discourage new landlords from entering the sector and will result in a lack of stock. This will inevitably lead to higher rents, as at the end of the day, landlords are business people and will need to compensate for this,” Glynis Frew, managing director of Hunters Property Group.

“The changes to mortgage tax relief for buy-to-let landlords will particularly hit those owning properties in prime central London, where the sums involved are very high and the yields extremely low. Notwithstanding this, if one accepts the Bank of England’s arguments, then the proposed changes are probably a proportional response to the issue. It might even help release a little more prime stock in central London to the market in the next year or so, although this might be wishful thinking.” Ed Heaton, Heaton & Partners

“This a major blow to a sector heavily reliant on private investors”

Nicholas Leeming, property expert

“This a major blow to a sector that is heavily reliant on private investors and who provide a crucial supply of property to the private rental sector.”

2. ON ABOLISHING NON-DOM STATUS

“Stricter rules will dampen demand from international buyers”

“It is vital that the capital retains its attraction to non-doms. The stricter rules being applied to non-doms, while having some merit, will inevitably further dampen demand from international buyers in central London where the market for higher valued properties has already slowed sharply following last year’s changes in stamp duty. This will affect the London economy, impacting restaurants, clubs and retail in prime central London.”

3. ON RELAXING THE RULES AROUND TRADING HOURS

“Britain is already renowned for a long-hours culture”

Jo Causon, CEO of The Institute of Customer Service

“Longer opening hours may be welcomed by consumers whose lifestyle means they demand greater choice and convenience to shop, but being ‘open all hours’ will not necessarily guarantee that customers get the shopping experience they want.

“Britain is already renowned for a long-hours culture and by encouraging more time ‘on the clock’ we could create a nation of disgruntled employees who feel compelled to put the hours in.  

“The fact is that great customer service is not just about opening the doors earlier, for longer.  It’s also vital to create an environment that frontline staff want to be part of, so they are engaged enough to provide the sort of quality service that encourages customers to return again and again. Only when there is a clear link between employee and customer needs will we have a chance of boosting the economy and closing the productivity gap.”

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