IoD calls on Chancellor to issue Brexit planning vouchers to help small businesses
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The Institute of Directors has urged the Chancellor to issue Brexit
planning vouchers for businesses in the upcoming Budget, as a new
survey reveals directors’ confidence in the economy has fallen
steadily over the past six months, with the UK’s uncertain trading
status with the EU becoming the leading concern for the first time
in 2018. Help to prepare for leaving the EU was the top ask from
directors, with a majority calling on Philip Hammond to make it the
priority in his...Request free trial
The Institute of Directors has urged the Chancellor to issue
Brexit planning vouchers for businesses in the upcoming Budget,
as a new survey reveals directors’ confidence in the economy has
fallen steadily over the past six months, with the UK’s uncertain
trading status with the EU becoming the leading concern for the
first time in 2018. Help to prepare for leaving the EU was the
top ask from directors, with a majority calling on Philip Hammond to make it the priority in
his Budget statement at the end of November.
Under the IoD’s proposed scheme, small and medium-sized
businesses could submit online applications for immediately
redeemable vouchers to purchase legal and professional advice in
order to be as prepared as possible for Brexit, whatever the
outcome of negotiations. The scheme would be in place for the
duration of any transition or adjustment period.
Over half of IoD members say they would be likely to take
advantage of financial support to help with their preparations,
and voucher systems have precedent in the Netherlands and
Ireland. A grant of between £2000 and £3000 based on the
InterTrade Ireland and Enterprise Ireland rebates could be spent
on Brexit-related advisory services from approved suppliers.
With the survey also showing business leaders’ investment outlook
at its lowest point in over a year, the IoD also used
its Budget
submission to call for the Chancellor to drive
productivity growth through investment incentives and skills
initiatives, alongside broader support for business costs.
Stephen Martin, Director General of
the Institute of Directors, said:
“A Brexit voucher system would help smooth over the inevitably
difficult adjustment period firms will face over the coming
months and years. More government guidance and advice would be
welcome, but for smaller firms in particular, the need is for
help to work out their individual exposure to changes that come
with Brexit, and the specific measures they can take to adjust.
“The Budget must also pull out the stops to get investment, which
has been stubbornly weak over the past two years, up and running
again. While business confidence undoubtedly takes a cue from the
negotiations, we could still make a tangible difference by
revamping capital allowances.
“But with so much of the political gaze focused on Brussels, the
Chancellor must find the far-sightedness to look beyond Brexit.
The UK’s poor productivity growth is not helped by Brexit
uncertainty, but it began well before the referendum. Skills
provision, business support, and infrastructure all require
thorough reform, and we must not wait to grasp these nettles.”
Further IoD Budget
submission proposals:
Productivity
Costs
Full survey results:
748 respondents, conducted between 5-21 September 2018
If the Government were to provide any financial support
to help organisations prepare for Brexit (e.g. vouchers to obtain
professional advice or making this tax deductible), how likely
would you or your organisation be to take advantage of
this?
Which of the following policy areas should the Chancellor prioritise in the Autumn 2018 Budget?
Which of the following factors, if any, are having a negative impact on your organisation?
The number of respondents for January 2017 to September
2018 varies between 700-1000.
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