ICSM Business News: the Chancellor of the Exchequer Jeremy Hunt’s Budget and what it means for businesses

ICSM Business News: the Chancellor of the Exchequer Jeremy Hunt’s Budget and what it means for businesses

By Harry Mottram: There was a time when most people of a certain age and lifestyle were interested in only two things when the budget was announced: booze and cigarette prices. Now the only thing everyone is interested in is energy prices.


The Chancellor of the Exchequer and the government’s chief financial minister The Rt Hon Jeremy Hunt MP must have known this as he somewhat theatrically announced that the Government subsidies limiting typical household energy bills to £2,500 a year would be extended for three months, until the end of June. There was a collective sigh of relief in Parliament as he went on to explain the rest of the energy section of the budget.

There would be £200m to bring energy charges for prepayment meters into line with prices for customers paying by direct debit. That will be a boost to consumer spending as it affects four million households.

Several billion will go into low-carbon energy projects – although it will be over 20 years – but it will boost some businesses once we know the details.

To the surprise of just about everyone nuclear energy is to be classed as environmentally sustainable for investment purposes, with the promise of more public funding he said – whatever your views on nuclear power the projects to construct them creates huge amounts of jobs, business and cash.

Another headline was there would be £63m to help leisure centres with rising swimming pool heating costs to invest in heat saving schemes – again a plus for businesses in than sector.


There has been an outcry in the media over the ‘tax cut for the rich’ when the chancellor abolished the cap on the amount people can save in pensions before getting taxed. And the tax threshold for a pension pot rises to £60,000.

Fuel Duty

Fuel duty frozen is frozen - hurray - and the 5p cut to fuel duty on petrol and diesel, due to end in April, is kept for another year.

Booze and fags

Alcohol taxes to rise in line with inflation from August, with new reliefs for beer, cider and wine sold in pubs while the tax on tobacco goes up 2% above inflation and a 6% hike for hand rolling tobacco. Ouch.


The chancellor has brought in several policies to boost the workforce that has shrunk since Brexit and the Covid Lockdowns – encouraging women, parents, the long term unwell and older people back to work. These include 30 hours of free childcare for working parents in England expanded to cover one and two-year-olds but not for two years after the next election.

Families on universal credit is up to a maximum of £951 and will be paid upfront so a boost for spending and there are £600 "incentive payments" for new childminders who can look after more kids which could help parents struggling to find help so they can take a job. The jury is out on whether the new fitness-to-work testing regime to qualify for health-related benefits is either fair or will work. There are other schemes to encourage more people to get a job but the £63m for programmes to encourage retirees over 50 back to work may well help a lot of firms – after all you can’t beat experience. And something the business construction community has be asking for a relaxing on the rules on immigration for foreign workers.


Corporation tax is up from 19% to 25%  - a move not welcomed by business and companies with profits between £50,000 and £250,000 will pay between 19% and 25%. However companies will be able to deduct investment in new kit to lower their taxable profits

And there will be tax breaks for the new Investment Zones and there will be reduced paperwork for international traders, who have been hit by Brexit red tape.

And anyone marketing tax avoidance schemes could face prison if convicted.


The Chancellor said there won’t be a recession this year – raising a cheer in the House of Commons and a sigh of relief amongst the business community – hut the economy will shrink marginally. He also predicted increased growth next year and inflation would fall to single figures later this year.


Ian Carrotte of ICSM said he largely welcomed the measures but said there is still work to be done in ensuring firms are legally obliged to pay invoices on time. “That would boost cash flow for thousands of firms and increase spending and investment,” he said. “ICSM would also liked to have heard news of convictions for fraudsters who either do a phoenix and leave suppliers unpaid and those who have defrauded the tax payer of Covid loans and PPE supplies.”


For information on ICSM visit www.icsmcredit.com or call 0844 854 1850.
ICSM, The Exchange, Express Park, Bristol Road, Bridgwater, Somerset TA6 4RR. Tel: 0844 854 1850. www.icsmcredit.comIan.carrotte@icsmcredit.com

About ICSM Credit

ICSM Credit has more than four decades of experience as a credit intelligence group whose members gain inside information about firms in trouble allowing them to avoid bad debts and rogue traders. To join costs less than a tank of fuel - while at the moment there's a special free temporary membership offer during the Covid-19 crisis which gives access to free legal letters. ICSM also has an effective debt collecting service which has a global reach - ask for details from Paul.

For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com on how to subscribe and to join the UK’s credit intelligence network to avoid bad debts and late payers. Follow ICSM Credit on FaceBook, Twitter and YouTube and Ian Carrotte on LinkedIn.

To keep up to date subscribe to the FREE ICSM Credit Newsletter to hear all the latest insolvency news and to see who has gone out of business click on the orange panel on the top left of the home page of the website www.icsmcredit.com or send an email to Ian.carrotte@icsmcredit.com

For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk

Tel 0844 854 1850 ___ Fax 01454 327 355
Privacy Policy   © ICSM All Rights Reserved