HTA Policy Executive , Thomas Rhys Dunn , writes on what the diligence might be able-bodied to expect from the new budget .
This budget , which is also the first budget of Boris Johnson ’s premiership , had ab initio anticipated to be a large budget with key declaration to formalise loyalty made in the Conservative Party Manifesto .
However , keep abreast the late alteration of Chancellor , as well as the economic impact of coronavirus , it is now expected that some of the largest measure will be scale back and will instead be announce later this class as part of the 2020 Spending Review , as well as a potential 2nd budget in Autumn 2020 .
The Chancellor is potential to increase spending to tackle coronavirus and possibly the Government ’s regional plans to ‘ level up ’ the economy , while also stick to the Conservative Party Manifesto commitment not to increase income tax , home policy revenue enhancement or VAT .
It ’s possible that the Chancellor could do this by increasing adoption , but it is more potential that he will aim to raise tax revenue via other source .
CoronavirusHelp for businesses affected by the coronavirus , include a possible short - term ‘ taxation vacation ’ , is expected but the point and what tangible support this would amount to is still to be seen .
patronage ratesIt is look that tomorrow the Chancellor will announce a much - foresee review of commercial enterprise rates , as well as confirming the already announced 50 % retail discount from 2021 , which would be a welcome footstep in reforming the current arrangement which is no longer fit for purpose .
Flexible workingFurther announcements could mayhap include measures on flexible workings .
With many mass choose to work in our sector for the flexibleness it offers , we are urge the Chancellor to back the flexibility needed in the marketplace , shine the seasonal nature of horticulture .
TaxA number of the potential tax change being considered could have significant implications for the industry .
As part of a wider bundle of reforms to inheritance tax , it is look that the Chancellor will end or tighten up Agricultural Property Relief ( APR ) and Business Property Relief rules ( BPR ) .
APR and BPR are crucial in offer family - persist business with the authority and stability to invest , innovate and grow for the longsighted - term without their businesses being hit by significant hereditary pattern tax tutelage when hand a family business from one generation to the next .
Further metre are expected to include scrapping enterpriser ’s relief , which reduce the Capital Gains Tax for people selling their business , and dropping the design cut to corporation tax from 19 percent to 17 per cent in April 2020 .
An final stage to the freeze on fuel responsibility on red diesel engine for off - route vehicles and machinery , as well a potential addition on all fuel duty , is also cerebrate to being considered by the Chancellor .
Sir Herbert Beerbohm Tree plantingIt is also being reported that the Chancellor is consider the introduction of a £ 640 m “ nature for mood ” investment trust to plant 75,000 Acre of trees a year by the end of the parliament , as well as restoring peatland .
This would be welcome but also needs to come as a wide packet of support to ensure that business concern have the motivator , flexibility , capability and skills needed to be able-bodied to meet the authorities ’s targets on tree planting .
What the HTA are sayingAhead of the budget James Clark , Director of Policy and Communications at the HTA has allege : “ With the immediate challenge demonstrate by coronavirus we would welcome Government inaugurate a ‘ commercial enterprise tax holiday ’ through this very difficult period .
The British garden retail industry has shown logical class on twelvemonth increase for a issue of years , but our retail merchant , grower , landscaper and manufacturer members all require economical certainty as we approach this fundamental time for the garden trade . advance on the EU stake transition trade situation , a pliant attack to the labour marketplace incentivising actor to connect the manufacture and a long - delinquent review of line of work pace are much take . The Government has made some strong assurance around the environs , but specific and direct financial support for UK nursery yield sector is call for to help it grow and meet increasing demand , in a biosecure manner . ”
What next?Tomorrow we will be closely monitoring developments and will be responding to the Budget in full once it has been announced , as well as informing member on what it will have in mind for them .
For more informationHorticultural Trades AssociationHorticulture House19 High StreetThealeReadingWest BerkshireRG7 5AHT : +44 ( 0)118 930 3132Fax : +44 ( 0)118 932 3453NGGV : +44 ( 0)118 930 2092www.the-hta.org.uk
