The Budget will “give all businesses a fair crack at getting back on track”, the managing director of a Cumbrian firm says.
Today Rishi Sunak, the Chancellor of the Exchequer, announced his 2021 budget, with key announcements being the extension of the furlough scheme until September and that support for the self-employed will continue with a fourth grant covering February to April, and a fifth grant from May.
Managing director of Moor Row-based Entrepreneurs Group Ltd, Keith McMean said: “I think on the whole this is a budget to celebrate, yes there will be a massive amount to pay back but I know investment in businesses, large and small will be unprecedented.
“The corporation tax rise will be a major talking point over the coming days and weeks, but I think we need to remember that the 25 per cent rate won’t take effect until April 2023, after recovery is well underway.
“Plus, small businesses with 50k or less of profits will remain on the current 19 per cent. This will be the vast majority in Cumbria. Only businesses with profits of 250k and above will pay the full 25 per cent rate. This will give all businesses a fair crack at getting back on track.
“My biggest concern for businesses in Cumbria is the amount of loans they will accrue and how many will be able to make the repayments once they start.”
Mr McMean said that unemployment rates have already been inevitability affected over the last twelve months, even though the furlough scheme has protected more than 11m jobs since the pandemic began with 4.7m workers on furlough in January.