London business people tell us what they think
Jon Moulton, chairman, Better Capital
“The worst thing about the Budget is the dreadful reduction in Gift Aid.
“Charities are already struggling – to reduce giving from rich people at a time where the Government is reducing services is incredibly hard. This will really hurt charitable giving in the UK.
“The Big Society idea has clearly been tossed on the bonfire.”
David Buttress UK MD of Just-Eat.co.uk, an online take away website
“There are some good headlines for entrepreneurs in this Budget. The corporation tax is a decent win because it’s a tough Budget to balance against such a tough economic background.
“The key thing for SMEs is making the benefits on offer accessible and not tied up in red tape. It’s worth noting that the Enterprise Finance Guarantee has not worked as well as it could have because you would need a team of accounts and lawyers to obtain it! As an SME you just don’t have the resource to go through the hoops.
“I think the arguments over 50per cent tax rate often miss the point. We need to incentivise success in our economy and not penalise it. The political climate needs to adjust to celebrate the success of wealth creators and people who take the risk of starting a new business. They ultimately end up paying a large amount of linked taxes, such as NI and PAYE for people they employ, company taxes, VAT, CGT etc. The attitude of taxing these people heavily is simply negative and encourages entrepreneurs to look elsewhere when locating their businesses.”
Mark Pearson, founder of discount website MyVoucherCodes.co.uk:
“This could be the watershed moment the UK economy has been crying out for. Cameron has said that he wants the next Facebook to come from the UK, and it’s finally looking like they’re doing something about actually helping this to happen.
“Our economy’s future relies on the bright ideas of the young people of today, and it’s fantastic news that they’re actually going to be given a helping hand.”
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Melody Hossaini, Apprentice contender and founder of InspirEngage Ltd, a global youth consultancy business
“The budget needs to always reflect the current needs of people, and today’s announcement has, at least in part showed a willingness to move with the times and reflect a real need for a focus on enterprise among the young.
“If the government can lend to young people to go to university, then they should lend to young people to start a business. The important thing now will be to design an effective implementation framework to benefit those who most need the support in a sustainable way.”
Simon Dolan, managing director of SJD Accountancy and EasyAccountancy.co.uk:
“When will they ever learn that penalising the people who create wealth creates exactly the opposite to what they want to achieve i.e. extracting the most amount of money from us.
“Look at the example of the 50 per cent rate- it is being cut because it didn’t raise any money and was a disincentive, yet in the same breath they put Stamp Duty up to 7 per cent and discuss a wealth tax! I pay literally millions a year in direct taxes yet year after year get penalised for doing so whilst the ne’er do wells get paid for doing nothing. I won’t be long before all the wealth creators in this country simply get up and leave- then who will feed and pay the ones left?”
Rajesh Agrawal, chairman & CEO, Xendpay.com, a global online payments site:
“In the current economic climate, the country needs a business and entrepreneur friendly Budget. While the cut in corporation tax is welcomed, the tax relief in certain sectors like video games, animation and high end television production seems like a window dressing. There are several other sectors which need equal if not more encouragement.
“Small firms have limited resources and are stretched, simplification of the tax system for them will certainly be helpful.
“We still need to see more from the Chancellor on how he will achieve some of the things he has mentioned like the doubling of exports. How exactly would the Enterprise Loan scheme work?
“The reality is that business is the only engine able to power us out of the current situation.
“The question is – is the Chancellor going to pile on some fuel in the shape of real help for small business, or is he content on repainting the passenger carriages and guard’s van as usual?!”
Toby Moore, chief technical officer at Mind Candy, the people behind Moshi Monsters:
“We’re thrilled to hear about the forthcoming tax breaks for the UK gaming industry. The move will help smaller companies get off the ground and enable bigger studios to compete for top talent.
“Tax incentives will help keep local talent here in the UK when competing against other countries who’ve had a much more enticing offering to date. The Government’s recognition of the UK’s tech and creative industries, and their potential to produce world class games, is a promising step forward in fostering technology, innovation and creativity in the UK economy.”