The Chancellor’s Budget speech made in the House of Commons today was met with largely positive feedback from the business community. Its plans for growth include a series of tax cuts and some 43 reliefs which will be scrapped as part of simplification of tax code. But, says business advisor, KPMG, improved competitiveness in the UK is not just about tax.

The firm's head of risk and economics, Bill Robinson, said, “The overarching theme was the need to make Britain competitive once again as a place to do business. This was signaled in three ways: in the money found for an additional cut in the Corporation Tax rate and for improved tax treatment of business start ups and research and development. The Chancellor promised a major simplification of the tax system, presided over by the Office of Tax Simplification. And he promised a “bonfire” of regulations.

“However, improving competitiveness is not just about tax. The Chancellor identified a need for a more competitive, because better educated, work force, and made money available for 50,000 apprenticeships, 80,000 work experience placements and additional investment in university technical colleges.

“The Chancellor also billed this as a budget to help those in greatest need. The simplification of the tax system included a rise in the personal allowance; first time buyers are helped by assistance in meeting the deposit for house purchase. Much of the help was targeted on motorists, who benefits from the reduction in fuel duty, a reduction in Vehicle Excise Duty and improved mileage allowance payments.

“Overall this was a politically astute budget, aiming to meet two objectives: to reduce the pain of the ordinary voter where it is most felt, notably in the housing market and in the cost of filling up the car with petrol; and to signal a future pro-growth, pro-enterprise, pro-export and pro-investment stance for government policy.

“The sum of money devoted to these objectives could only be small, because getting the public finances back to health remains the overarching objective. But the Chancellor managed to find some money and used it to send out some important signals of intent.”

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