Mixed reaction from Glasgow businesses to Government’s mini-budget announcement
Glasgow businesses have shared their opinions on the new mini-budget announced at Westminster today (Friday).
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Newly appointed Chancellor of the Exchequer, Kwasi Kwarteng, announced the new ‘mini-budget’ in Westminster.
The Government will cut stamp duty and get rid of the higher income tax - alongside tens of billions in extra spending and tax cuts in hopes of boosting economic growth in the UK.
Caps on banker bonuses were also removed and corporation tax has increased on big business profits.
As Glasgow faces a cost-of-living crisis, recession and massive inflation - it was hoped that the budget would help support smaller, independent businesses in the city.
Labour has criticised the new budget, who believe it will benefit the richest in the UK, rather than the poorest.
Businesses across Glasgow have shared their opinion on the mini-budget announcement with GlasgowWorld following the budget reveal today.
Euan Cameron, founder of Willo - a Glasgow-based video interview start-up - said: “I think this is just about the worst budget announcement I have heard. For new businesses and organisations that are looking to grow, this mini-budget was a real disappointment.
“UK growth and productivity has been stagnant since 2011, and cutting taxes will not fix that - but investment in businesses, training and apprenticeships will.
“Today’s mini-budget statement tells me that the Chancellor has no interest in fixing the problems facing our economy, and as a business means we will seek to increase our operations in international markets which are continuing to grow and thrive.”
Duncan di Biase, founder and CEO of Brillband - a Glasgow-based internet service provider due to launch later this year - said: “It’s a relief to hear that telecoms supply and digital innovation is a priority to this Government - however, the proof will be in the pudding.
“Talk is cheap, and broadband needs to be cheaper across the board. We need swift, fast action from the government to ensure households can stay connected without having to pay huge bills.
“People need help now, and innovation cannot be a mutually exclusive swap for ensuring families can afford their broadband bills.
“We want to see the UK Government go further and make a commitment to support a digital innovation drive by protecting EIS, promoting early stage investment while ensuring bills aren’t pushed up further by providers.”
Fergus McCoss, co-founder of Glasgow-based Hinba Coffee Roasters, said:“We welcome the Chancellor’s statement today - the decision to scrap the planned rise in corporation tax and reverse the increase to National Insurance is great news for our staff and the business.
“The past few years have been extremely tough for the hospitality sector, and while we welcome any further help for employers, keeping our staff in jobs is our main priority.
“I hope the Scottish Government follows suit with the reduction of income tax and stamp duty, which would help our employees get on the property ladder and settle during these difficult times.
“We are determined to keep the business thriving, so if it means we open seven days a week to allow us to keep our staff in jobs, then we will do so.”