Mark Jenkins, CFO, MHR International, has commented on yesterday’s Budget, highlighting the impact on business, and corporate finance executives.
“Sunak’s Budget has put the right priority first – ‘protect and invest for effective recovery’. Measures aimed at capping and controlling business costs while the economy regrows provide essential certainty to businesses. The range of extensions, freezes, tax rates and reliefs will now make it easier for CFOs to forecast accurately through financial modelling and analytics within clear parameters.
“It was inevitable that we would have to contribute to the cost of the pandemic. However, it is positive to see relatively minimal impact on the finances of the individual, with the main methods of recovery coming from Corporation Tax rises, tapered fairly in line with scale of business and profit. The delay of this increase until 2023 also gives all business the opportunity to make recovery plans and the time to factor in this change.
“Even though we are hopefully seeing light at the end of the tunnel, for many businesses the bounce-back will not be immediate and it is good to see commitment to extending several emergency measures such as furlough, sector VAT reductions, and business rate holidays, well beyond the predicted ‘end of lockdown’ in June.
“Finally, future certainty for the CFO is also about making use of incentives for investment and growth. I am particularly inspired by the Super Deduction announcement whereby innovation investment for the next two years will deliver a well-needed tax relief boost. Working in the data, analytics and AI sectors with MHR Analytics, which is part of MHR International, I know first-hand how important innovation incentives can be. This will encourage businesses like ours to look at creating new opportunities at a time when the natural tendency would be to keep holding our breath for a little longer.”
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