Chancellor George Osborne announced a number of measures that could boost the economy in and around Bristol in this week’s Budget.
These included granting full approval of the third and final section of Bristol’s MetroBus Network, running from the North Fringe to Hengrove and housing zones in South Bristol and Weston-super-Mare.
There was also help for the video games industry through tax credits and the promise of financial help for ‘smart cities’ and the Internet of Things.
The widely-welcomed MetroBus measure completes the scheme development process for the 50 km MetroBus network that will provide a new reliable public transport service from Long Ashton Park and Ride to the city centre via Temple Meads, with an alternative route via Hengrove and Bedminster, and a direct service through the city centre to UWE and Parkway station on to Cribbs Causeway, or Emersons Green, where a new Park and Ride is already waiting.
Cllr Brian Allinson, the South Gloucestershire representative and chair of the Joint Transport Board, said: “This is terrific news, MetroBus is a significant part of a £400m programme of sustainable transport improvements in the West of England until 2020 which will link areas of housing and economic growth, provide greener and better alternatives to travelling by car and as a result reduce traffic congestion and air pollution levels.”
In a joint statement, Bristol Chamber of Commerce executive director James Durie, and Robert Sinclair, chief executive of Bristol Airport – both LEP representatives on the Joint Transport Board – added “The new MetroBus network and our planned MetroWest improvements send a clear signal to Government and potential investors that the West of England is serious about working together to improve our local public transport. This investment will bring new jobs and business to the area and creating a brighter future for us all.”
The housing zones, among 20 announced by the Chancellor, are pilots to speed up homebuilding on brownfield sites through the use of streamlined planning powers, cheaper borrowing from Government funds and priority access to planning and technical support.
Phil Smith, pictured, managing director of Business West – the organisation behind Bristol Chamber of Commerce and the Bristol Initiative – said businesses would welcome many of the measures on business tax. 
“Business rates reform was trailed in the Autumn Statement, and plugged again,” he said. “We await the detail with keen interest, but as reform has to be fiscally neutral, it is hard to see how we are going to see really fundamental reform of this out-dated and unfair tax, without ‘robbing Peter to pay Paul’.
“There was better news for the self-employed, with the abolishment of class II National Insurance contributions. The abolishment of the annual tax return will be good news for all those small traders and the self-employed who have ever struggled with time consuming returns on the 31st of January – but it is unclear just how simple the alternative will be. The cancellation of fuel duty rise pencilled in for September will also reduce pressures on many firms’ bottom lines.”
Phil Brownsord, pictured, regional director of EEF, the manufacturers’ organisation, said his sector would give the Chancellor three cheers, particularly for his measures to boost exporters.
“His decision to bring forward compensation for industries facing vast and uncompetitive energy costs, such as steelmakers, is also welcome but the full package needs to be put in place as soon as possible,” he said. 
“In addition he has committed to a stable and competitive tax regime, which we wholeheartedly support and which should go down well with local businesses.”
Further efforts to make the research and development (R&D) tax credit more accessible for small claimants were also welcomed along with measures to help the oil and gas sector and encourage investment.
“This longstanding relief within the tax system has come to be valued by manufacturers for whom investments in R&D are becoming ever more important for business success,” he said. “If these changes can bring more companies into the scheme and encourage higher levels of investment in innovation, that can only be good for UK plc in the long run.”
On the Annual Investment Allowance, Mr Brownsord added: “Recognition that action is needed on the level of investment allowances will be welcomed by manufacturers. This will ensure we don’t lose any momentum in the business investment recovery by withdrawing extra support through the tax system too soon. We now want to see a long term solution to creating a stable and competitive regime for investment announced later in the year.
“In addition, it is good to see Government continue to press ahead with support for world-class technologies with new investment in science and innovation infrastructure.”
But Malcolm Emery, pictured, a partner at regional law firm Thrings – which has an office in Bristol – believes some mid-market businesses may be disappointed by a lack of support from the Chancellor. 
“Despite significant tax revenues being generated in this market, successive governments have failed to invigorate businesses by introducing innovative tax reforms to help boost their profitability and the economy as a whole,” said Mr Emery, pictured, a dual-qualified chartered tax adviser and solicitor.
“A large number of these businesses operate in the South West, and many will argue that the lack of tax reforms has impacted on the performance of the local economy.”
However, he said Mr Osborne was trying to assist smaller companies raise finance to help their businesses grow – particularly those in the all-important tech sector.
“He announced changes to the Enterprise Investment Scheme (EIS) and Venture Capital Trusts so that both schemes are compliant with the latest state aid rules. The EIS in particular is a very popular way for fast-growing companies, particularly those in the technology sector, to raise working capital from private equity sources.”
Mr Emery said the Chancellor appeared to be planning for his next term of office by delivering a very measured Budget rather than “going out with a bang”.
Mike Lea, managing partner at the Bristol office of accountancy and investment management group Smith & Williamson, pictured, highlighted what he saw as bad news for the banking sector. 
“Further to the announcement in the Autumn Statement regarding the restriction for banking companies of the use of tax losses incurred up to March 31, 2015, the Government has announced that the Bank Levy will be increased from 0.156% to 0.21% from April 1, 2015. The Government is also intending to consult on the introduction of measures to make banks’ customer compensation expenses non-deductible for corporation tax purposes.
“The banking sector continues to be the target of a Government in need of funds to reduce the deficit – their logic being they helped the sector on the way into the recent recession and it is the banks’ duty to help the country on the way out.”
National Association of Cider Makers chair Martin Thatcher cheered the 2% cut in duty on cider, saying the industry would raise a glass to the Chancellor this evening.
He said: “We are delighted that the Chancellor has decided to support the British cider industry by cutting duty in his Budget. This is a very welcome decision and proves the Government understands the huge importance of our industry to rural communities.
“This important decision will be celebrated by cidermakers up and down the country as it protects the investment they have made over many years to grow the industry and support thousands of jobs.
“We and all cider drinkers will be raising a glass of delicious cider to the Chancellor this evening.”
Bristol’s growing role as a centre for film and TV production could benefit from the steps laid out in the Budget making the UK’s film and TV tax credits more generous, and the introduce the new children’s TV tax relief, according to Fiona Francombe, site director of the city’s Bottle Yard Studios, pictured. 
“Since being introduced in 2013, the high end TV tax credit has already created a surge in both domestic and international productions filming in the UK,” she said.
“The Bottle Yard Studios is now well established as a major competitor on the UK studios scene, with a proven track record of accommodating high calibre, big budget titles like Disney/ABC Studios’ Galavant and the BBC’s Poldark and Wolf Hall.
“Anything that leads to a further increase in productions being made here is good news for our local industry. With its supportive Film Office, spacious production hub at The Bottle Yard Studios and world-class crew and facilities companies, Bristol is better placed than ever to welcome the new productions that will hopefully be greenlit in light of this these new measures.”
The Chancellor’s plan to reduce charges on the Severn Crossings was applauded by West of England commercial property experts Bruton Knowles.
George Osborne pledged to reduce the toll rates from 2018 and abolish the higher band for small vans and buses, acknowledging the Severn crossings are a vital link for the West and Wales.
Mike Rees and Paul Matthews, who head up Bruton Knowles’ Cardiff and Bristol offices, have been lobbying to reduce – or scrap – the tolls altogether.
Mr Matthews said: “The Chancellor was quite specific addressing his comments at ‘white van man’, but I believe this translates to small and medium-sized firms in general. Removing charges for small businesses makes it much more viable to work either side of the Severn.
“As we said earlier this year, the charges are one of the biggest obstacles to greater cooperation between Bristol and Cardiff and must be addressed if this shared vision is ever going to amount to anything more than wishful thinking.”
Mr Rees added: “There is no way Cardiff and Bristol are going to have a sensible relationship unless there is movement between the two cities. We cannot continue to charge commuters almost £7 a day for the privilege of simply crossing the bridge. The Chancellor’s announcement holds out the prospect of cheaper tolls which will clearly encourage business connectivity.”
Jo Davis, regional senior director at property agency Bilfinger GVA’s Bristol office, also supported the reduction of some tolls.
“If the ‘Great Western Powerhouse’ is to succeed and create an inward investment opportunity on an equal footing with other regions of the UK, then the lowering of the Severn Bridge Tolls in 2018 is a good starting point. We welcome the Chancellors decision,” she said.
Tax partner at accountants EY in the South West, Karen Kirkwood, pictured, welcomed the £40m investment to develop Internet of Things (IoT) technologies. 
“But she added: “However, the Chancellor needs to remember both the risk and opportunities for the UK of the IoT.
“The interconnectivity of people, devices and organisations in today’s digital world opens up many exiting new opportunities and the ability to create efficiencies across key areas such as health and social care.
“However, there remains a whole new playing field of vulnerabilities as traditional organisational perimeters erode and existing security defences come under increasing pressure, requiring a rethink in how organisations approach cybersecurity.
“Therefore it is imperative that the funding allocated by the government not only supports the opportunities posed by the IoT but addressed the inevitable risks it also brings.”
