The Chancellor of the Exchequer has announced the Spring forecast in Parliament. Commenting on the statement, FBUK Chief Operating Officer Fiona Graham said:
“Stability and certainty are critical to all businesses and the economy. Today’s statement—and the Government’s commitment to move to one major fiscal event a year—should be welcomed for aiming to create that environment.
“With the return of conflict in the Middle East and increasing geopolitical instability, higher taxes, weak growth and unemployment forecast to move higher this year, stability and certainty must not mean inaction. Major structural issues including persistent and rising levels of unemployment among young people and low rates of productivity must be addressed if the Government is to truly unlock growth.
“For family businesses, there was nothing much to cheer in today’s statement. With changes to inheritance tax due to come into effect next month, the OBR repeated the high degree of uncertainty in how businesses will respond to the tax. Our evidence continues to indicate that it will further reduce employment, weaken investment and productivity growth, and lead to a fiscal loss to the Treasury.
“If the Government is serious about reversing these trends and raising our standard of living through economic growth, it must look at how it can properly incentivise businesses to create investment and opportunities in every part of the country.”