Leading Plymouth financial expert says businesses need help in budget to invest in infrastructure
THE Chancellor must today announce measures to boost jobs and introduce tax relief on industrial buildings, says a leading Plymouth financial expert.
Mat Scott, tax director at financial services firm KPMG in Plymouth, said George Osborne could encourage employment by cutting employer's national insurance rates.
But while this move would be "popular", Mr Scott said, it would hit the Exchequer in the pocket.
"A more targeted action could be a reduction in national insurance rates for new joiners for a limited period," Mr Scott said.
Business Cards From Only £10.95 Delivered www.myprint-247.co.ukView details
Contact: 01858 468192
Valid until: Friday, May 31 2013
"This would encourage new employment and provide more mobility in the labour market which could help employers manage their headcount."
He said introducing tax relief on industrial buildings could also "help and re-balance the economy".
With the Government having abolished industrial buildings allowances, to level with other commercial properties, Mr Scott said reintroducing this tax relief could kick-start the construction industry and investment in the country's infrastructure.
"The relief could be spread over years to lessen the financial impact on the Treasury and if introduced for a limited period of time should accelerate projects," he said.
Mr Scott said whatever the Chancellor announces today, Plymouth businesses want policies that will initiate economic growth and give them confidence needed to invest.
He wants the Chancellor to announce, therefore, tax incentives to encourage companies to invest in UK infrastructure.
"This would provide a long-term boost to our economy and would be welcomed by those working in the South West's beleaguered construction sector.
"Infrastructure is of crucial importance," he said. "If we don't invest in it, albeit through tax breaks, we risk falling behind our international competitors."
He added: "Slashing red tape that impedes growth would also be a step in the right direction."
And he said another key priority should be to attract foreign investment.
"Overseas businesses are amongst the major employers located in Plymouth and we need to encourage more to set up home here, and retain those already here."