CFOs have recently shared their expectations for the upcoming Autumn Statement, and it seems like there are mixed feelings among them. While some are hopeful for support for innovation and growth, others are worried about potential tax hikes that could negatively impact businesses.
In a recent survey conducted by iFD, it was found that CFOs are particularly interested in seeing tweaks to research and development tax scheme reliefs and allowances, with a focus on tax credit support, increased tax breaks for R&D investments, and improved incentives for innovation. Additionally, CFOs are hoping for a reform of business rates, greater access to grants and investments for skills training and education, and support for businesses to achieve their climate change objectives.
Despite Prime Minister Sir Keir Starmer’s warning of a “painful” budget, some CFOs remain optimistic about the Statement, believing that the current government will not simply spend and give money away like past Labour governments. However, concerns about potential tax increases, especially in Capital Gains Tax, Corporation Tax, and Inheritance Tax, are still prevalent among CFOs.
One major worry among CFOs is the possibility of successful businesses and individuals being targeted with increased taxation, potentially leading to an exodus of business owners from the UK. This could result in further tax hikes down the line for those who choose to stay. Chancellor Rachel Reeves is rumored to be considering an ‘Exit Tax’ to address this issue.
Furthermore, CFOs are not in favor of higher taxation on higher earners, increased staffing costs, or reductions in research and development tax scheme reliefs and allowances. These are areas that they would like to see reformed in the upcoming Autumn Statement.
Overall, CFOs are eagerly awaiting the Autumn Statement to see how the government plans to support businesses and stimulate economic growth, while also keeping an eye out for any potential tax changes that could impact their operations. It will be interesting to see how the Chancellor addresses these concerns and priorities in the upcoming budget announcement.