A Cumbrian-based accountancy firm has welcomed Chancellor of the Exchequer Rishi Sunak’s spending plans to protect and create jobs but is warning of further changes in the Autumn Budget.
The Chancellors ‘mini-budget’ costing £30bn on Wednesday was in response to the UK economy shrinking more in a few months than it has grown in the last 18 years.
Graham Lamont, chief executive at Lamont Pridmore who have branches in Carlisle, Penrith and across Cumbria, said: “Businesses have been anxious about the whittling down of support in the months to come. The Chancellor made it clear in his speech that the Government couldn’t continue to prop up jobs or businesses that were likely to fail without support.
“However, many will be pleasantly surprised with what was announced, which will go some way in helping businesses to rebuild and recover.”
Graham said that chief among the Government’s new measures was the Job Retention Bonus. This new measure will offer a one-off payment of £1,000 for each previously furloughed employee that returns to employment before January, as long as they are paid at least £520 a month. It was one of several important measures announced as the Government looks to “protect, support and create jobs”.
Graham said: “The bonus tied to other measures, such as the Kickstart Scheme, which offers to cover 100 per cent of the wages for 16-24-year-olds at risk of long-term unemployment that are enrolled on work placements for six months, are important in helping businesses to retain and find new workers.
“An immediate temporary increase to the Nil Rate Band of Residential Stamp Duty Land Tax, in England and Northern Ireland, from £125,000 to £500,000 will mean that nine out of 10 ten people getting on or moving up the property ladder won’t pay tax.
“The Chancellor alluded to a Budget and Spending Review in the autumn and the Government will need to take big steps to recoup the billions of pounds it has spent to support the economy. Businesses and individuals will need to carefully monitor this later in the year as we are likely to see measures that may affect tax and public spending.”
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