Responding to today’s Budget announcement Tom Russell, President of R3, the UK’s restructuring, turnaround and insolvency trade body and a licensed insolvency practitioner and director at James Cowper Kreston, said:
“With so much speculation ahead of today’s Budget, many business owners will welcome the certainty that comes with finally seeing the Chancellor’s plans. Greater clarity gives firms the ability to plan with more confidence around investment, staffing and growth.
“The decision to lower business rates for retail, hospitality and leisure is particularly welcome and will provide a lifeline to many SMEs in sectors that continue to face significant financial pressures. Directors will also be hoping that the measures aimed at easing cost-of-living pressures will help support consumer spending.
“On the other hand, businesses will need to factor the increased costs of the minimum wage rise into their planning, as this may drive wider inflationary wage pressures across their workforces at a time when tackling persistently high inflation remains a priority.
“We welcome the additional funding for the Insolvency Service to pursue rogue directors who abuse the insolvency process to avoid tax. R3 has long called for greater resourcing in this area. It is hoped the numbers being disqualified will expand significantly to protect creditors and others.
“There are also measures in the Budget that demonstrate HMRC’s continued commitment to robust tax collection in support of the public finances. While ensuring tax is collected where it is due is positive for taxpayers, it will add further cashflow pressures for businesses already in distress.
“As the leading voice for the UK’s restructuring, turnaround and insolvency profession, R3 will continue to draw on its specialist knowledge to guide and support businesses through the evolving economic landscape.”
