Professor Peter Urwin, Professor of Applied Economics, wrote an article for Business Leader reacting to the Chancellor’s presentation of the Spring Budget last week.
In the article, Professor Urwin discussed the measures outlined in the budget, and said: “The rumoured raising of corporation tax above 19% will be introduced in April 2023 to 25%, with a ‘small profits’ rate to protect smaller businesses. Together with a freezing of the personal income tax allowance, these are a start, but they are sticking plasters. Politics and economics gave Mr Sunak little choice over his long-term strategy, as only one of the three options open to him is palatable – but it is very high risk.”
Talking about the Chancellor’s options to steer the country out of the pandemic, Professor Urwin said: “The Chancellor made clear that his long-term solution to our problems is a research and investment-led, private enterprise driven, regulation-lite productivity miracle. Announcements on ‘super deductions’ for business investment, policies to support a ‘scientific superpower’, free ports, a UK Infrastructure Bank and a variety of others reflect a clear direction of travel.”
He added: “‘Miracle’ is perhaps a little harsh, but the Chancellor’s own defence that this is ‘not hubristic’ reflects the fact that, the last time we achieved such a feat was in the second half of the 19th Century. In common with the present environment, the period between 1850 and 1900 was also one of low interest rates – but the risks are very high that a truly difficult conversation will still eventually be needed.”
Read the full article on the Business Leader website.
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