Opinion: The Budget with Gary Fredson

Last week Rishi Sunk announced the 2021 Budget. After allowing the dust to settle Trailblazer asked Gary Fredson, CEO of national green energy company ESE Group for his thoughts:

Tax Increase

As a business owner, I admit I'm somewhat disappointed with the decision to increase Corporation Tax. Having said that, it is worth noting that the tax rate is still the lowest in the G7 and will remain so even after the increase.

The chancellor has confirmed that the rise in Corporation tax will not take place until 2023. Good news that allows any affected businesses some time to recover and prepare for any necessary changes to their operations.

In an effort to shield small business owners’ accommodations have been made. The new rate on business profits will only impact companies generating revenue of £250,000 or more. Meaning around 70% of active smaller businesses who have been hit hard during the Covid-19 crisis will not be affected. They can breathe a tentative sigh of relief and continue to recuperate from any monetary loss experienced during the pandemic.

I recognise the unique situation the pandemic has put the country in financially, and that the approach taken by our government to bring down the deficit is one with a view to economic recovery and moving us forward as a country.

Job Retention Scheme

The Chancellors announcement that the Job Retention Scheme and the weekly £20 increase in Universal Credit will be extended until September 2021 is welcome. Some see the extension as nothing more than the delay of unavoidable redundancies that will follow once the scheme comes to an end, but there are positives. The extension provides a degree of financial security the 8.9 million people furloughed could not cope without.

Throughout the pandemic, the government's furlough scheme has been an essential and worthwhile investment. However, I'd make the argument that a larger percentage of fiscal responsibility should be taken on by employers where possible. Employers that are capable could and should look to top up payments above the granted 80%. That would meet the government halfway as we approach the end of lockdown and a gradual return to normality.

Liverpool City Region - Freeport

Additionally, there was some encouraging news in the budget announcement for my local area. Liverpool City Region was one of the eight locations granted official Freeport status. £850m will be injected into the local economy in a bid to drive inward investment, and an estimated 14,000 new jobs will be created. Goods will be imported and exported without having to adhere to the UK's standard tax and tariffs rules. Liverpool's economy will grow, and we will become a hub for global trade.

As the owner of ESE Group' a Green energy company, I'm excited by the potential to make Liverpool and its surrounding areas focal points for future investment in renewable and sustainable energy technology.

Apprenticeships

The budget also revealed an increase in apprenticeship funding. Previous cash incentives were between £1,500-2,000 for every apprenticeship hire, dependant on age. The revamped scheme has done away with age tiers making the programme much more inclusive. From April 2021, grants for adult apprenticeships will double to £3,000 per hire. Apprenticeships are invaluable for those looking to take their first steps into a new career path. I appreciate the government's efforts to support schemes that promote diverse hiring and encourage people to learn new things.

The budget will be tough on some, but overall and despite the uncertainty felt by all in the country at present. The bright ideas and constructive schemes the chancellor set out will allow us to shoulder the burden of economic recovery we must all, unfortunately, face.

ESE Group