So what did the budget mean for retail
A week after the Budget, Britain’s consumers are still digesting its impact for them, but all in all it is hoped that the Budget will do the job it was supposed to do and help get the UK back on track.
For retailers and businesses it is hoped the Budget will help businesses grow and create jobs, according to John Cridland, CBI Director-General.
“The Chancellor has made clear the UK is open for business,” he said.
The 1p cut in corporation tax should help firms increase investment whilst a number of changes in entrepreneurs taxation could stimulate new entrants prepared to take advantage of current market conditions.
“Small businesses are a vital part of the retail sector. 92 per cent of retail businesses have fewer than ten employees. Moves to widen their access to the finance they need to expand and increased reliefs on investment are positive,” said British Retail Consortium Director General Stephen Robertson who said the extension of Entreprenuers Relief could help the 20,000 annual retail start-ups.
Barry Knight, Head of Retail at business and financial advisor Grant Thornton, said the cuts in fuel pricing should also be welcomed “The scrapping of the fuel duty increase will have been top of retailers’ wish list and is at last some good news for the retail community which is still under tremendous pressure from low consumer confidence, cost inflation and rises in VAT and National Insurance.
High fuel costs hit hauliers, individuals and shops as when people cut down on journeys they are also likely to cut down on household goods and other spending which will have an impact on the whole economy.
Robertson agreed: “This is more help than expected. On its own it won’t make a huge difference to household budgets, but should give a boost to struggling consumer confidence,” he said.