Christian Wilson – Partner and Head of Commercial Law at Coodes said that despite a rise in VAT which will hit Cornwall and Devon’s small and independently run businesses, there are silver linings in the budget.
“We work closely with businesses both large and small across Cornwall and Devon, and we predict that the 2.5% increase in VAT will be a difficult pill to swallow.”
“Independently run shops and tourism businesses, for example, may be forced to swallow the increase to remain competitive against the larger retailers. Smaller consultancy or service-based businesses could be affected by clients struggling to pay the additional VAT on their bills.”
“We do, however, welcome some positive steps for businesses including the National Insurance measures taken to encourage recruitment of new staff, the pegging of duties on fuel and reductions in corporation tax over the next four years which may well make limited company status a more attractive business vehicle.”
“Business owners form the backbone of our economy in the South West. With cuts to the public sector imminent, we’ll be relying on the private sector to forge the exit route from this delicate economic climate.”