Lancashire businesses call for Spring Budget to encourage investment

By Tim Aldred

15 Mar 2023

Jeremy Hunt

Lancashire's business figures are calling for chancellor Jeremy Hunt to use today's budget to encourage investment.

Commentators do not expect there to be major announcements at the dispatch box, following a turbulent few years shaped by the Covid-19 pandemic, war in Europe and political instability in the UK.

Matthew Johnson, the associate partner at Preston headquartered chartered accountants and business advisors WNJ, said: "Experts are predicting a ‘constrained’ Budget this time out, given the weak state of the economy and the need to bring inflation down and cut public debt. However, despite all that, businesses will be looking for some positives from the chancellor, to give them belief that better times are ahead and the support is there to enable them to go for growth.

"Measures that will boost investment, encourage entrepreneurship and help our hard-pressed SMEs would be particularly welcome. So too would be signs that there is a credible longer-term plan to deliver sustainable growth, rather than a feeling that the chancellor is wholly focused on dampening down the fires currently damaging the economy, important though that work is.

“Especially welcome would be an announcement delaying the decision to cut Research & Development (R&D) tax relief. As the Federation of Small Business (FSB) points out, tax credits for small businesses doing R&D have been the single most successful feature of the last decade of innovation policy."

Matthew added: "Businesses will also be looking to see how the chancellor addresses the continuing pressure businesses are feeling from fuel prices. Will we see some form of targeted support? The 5p per litre cut in fuel duty, announced by the then chancellor Rishi Sunak last spring is coming to an end. Extending it would be another welcome move."

Tony Medcalf, tax partner at Preston-headquartered accountancy and business advisory firm MHA Moore and Smalley, added: "There have been calls for the government to announce a reduction in corporation tax but I do not think we will see that. During his leadership campaign, Rishi Sunk defended the increase in corporation tax and was keen to focus on promoting innovation and research and development. The Annual Investment Allowance is currently still £1m so although corporation tax is now 25 per cent, when you look at it, this only affects around 30 per cent of UK companies.

"I think there are going to be a lot of announcements which provide tax relief incentives for companies to invest in their productivity and growth. The capital allowances super deduction is due to end on March 31 so this could be the focus of an announcement. We could also see further support for freeports and enterprise zones

“The government is also keen to prompt investment in early-stage businesses and I think more will be announced to encourage this. One possible measure could be the extension of the Enterprise Investment Scheme.”

David Bharier, head of research at the British Chambers of Commerce, called for the chancellor to address a difficult jobs market.

He said: "New ONS figures provide further evidence of historic tightness in the labour market. Despite a slight fall, there are still over 1.12m vacancies across the UK. This confirms our own research that most firms are still trying to recruit staff. 

"Finding appropriately skilled workers is one of the top issues for businesses, and many tell us that this prevents them from fulfilling orders or expanding. There are several levers which the government can pull to ease the tightness in the market.  

"Firstly, alleviating childcare costs could give greater flexibility to those looking to return to the labour market. The government’s plan in tomorrow’s Budget to start paying childcare costs on Universal Credit up front is positive news, but further tax relief on childcare costs and reforms to increase childcare capacity are also needed.  

"Secondly, there needs to be a fuller explanation of the causes of the significant number of people out of employment due to long-term illness in order for government and businesses to invest in the right occupational health services. Occupational health services should also be made a non-taxable benefit in kind.  

"Finally, as the BCC has repeatedly said over the last year, government must reform the Shortage Occupation List to help firms fill urgent job vacancies from outside the UK when they cannot recruit locally."

Enjoyed this? Read more from Tim Aldred

Latest news

1

New India branch campus on the horizon for Lancaster University Keir Starmer meets Indian PM and included Prof Simon Guy Lancaster University. Pic Simon Dawson

New India branch campus on the horizon for Lancaster University

09 Oct 2025

2

Best events and talented students complete finalists list for Lancashire Tourism Awards 2026 Best Events and Talented students on Lancashire Tourism Awards finalist list

Best events and talented students complete finalists list for Lancashire Tourism Awards 2026

09 Oct 2025

3

East Lancashire Learning Group named UK digital transformation leader in CIO 100 Awards Andrew Dewhurst with the award win

East Lancashire Learning Group named UK digital transformation leader in CIO 100 Awards

09 Oct 2025

4

PHX Training appoints new business leader in Blackpool Jason Davenport PHX Training

PHX Training appoints new business leader in Blackpool

09 Oct 2025

5

Velocity seals Airbus extension worth up to $54m Velocity Composites Has Announced Its Entry Into The Us Market

Velocity seals Airbus extension worth up to $54m

08 Oct 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

Advantage: AI – A Workshop for Business Leaders – Oct 10th
Ai 10.10.png.png
LBV Hub Seminars
10 Oct 2025 - 10 Oct 2025

Advantage: AI – A Workshop for Business Leaders – Oct 10th

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 12:00

Unlocking major project opportunities in the North West
Lancs-cham-logo.jpg.jpg
LBV Hub Seminars
15 Oct 2025 - 15 Oct 2025

Unlocking major project opportunities in the North West

Strathmore Hotel, Morecambe, LA4 5AP

08:00 - 10:00

The New Employee Rights Landscape: Day One Compliance Essentials
EventBrite NORi - 15th Oct 2025 Webinar.png.png
LBV Hub Webinar
15 Oct 2025 - 15 Oct 2025

The New Employee Rights Landscape: Day One Compliance Essentials

Microsoft Teams, Microsoft Teams, PR253XH

13:30 - 15:00

The Autumn Re set - pour me a wine
LBV Advert_Autumn Reset 1200 x 630px.png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Autumn Re set - pour me a wine

The Artistry House , Preston , PR1 3JJ

17:30 - 19:30

The Business Network Central & East Lancashire
LBV Header (26).png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

October Freelancer Meet-Up
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

October Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin