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Budget measures did not go far enough, says finance group

 

The Institute for Fiscal Studies (IFS) warned that recent announcements do not give businesses the certainty needed to drive the economy.

 

Helen Miller, economist at the IFS, said: ‘When the Government came to power they set out the corporate tax road map. It set out a clear trajectory for tax rates. I think what we’ve seen more recently in budgets is more tinkering around the edge that probably isn’t going to have any long-term effects”.

 

The Chancellor’s efforts to boost the economy were largely welcomed by business groups after he gave his speech on Wednesday.

 

The IFS said that doubling the annual investment allowance for businesses was a positive step but did not take into account industrial buildings which are not covered by the allowance.

 

Concerns were also raised about the changes to pensions. IFS Director Paul Johnson questioned the scheme, saying it was ‘one of the biggest shake ups seen in a long time’, adding that it was based on ‘highly uncertain assumptions’.

 

As more groups have time to analyse the new plans, there will likely be more feedback in coming days.