Hunt could extend tax relief for businesses and boost planning to drive stagnant economy
Jeremy Hunt could extend an investment tax relief for companies and announce planning reforms to boost growth in lieu of any new tax cuts for businesses in the Autumn Statement.
The Chancellor will make announcements around infrastructure and planning as part of a package of measures to help businesses and drive economic growth, i understands.
He is also understood to be keen to extend a £10bn tax cut designed to boost corporate investment if he has enough fiscal headroom.
Mr Hunt previously said he wanted the Full Expensing tax relief, announced in his Spring Budget, to become permanent – but sources said he had not made a final decision due to the multibillion-pound price tag.
The relief allows companies to deduct the cost of big ticket investments, such as the purchase of machinery, from their profits for tax relief.
Speaking on Friday, Mr Hunt also did not rule out continuing with the business rates freeze, which is due to expire in April.
He told Sky News: “Within the fiscal constraints within the money that I have available, I will always do everything I can to help businesses get through what’s been a very challenging time.”
A Treasury source said a decision had not yet been taken but pointed out that a full rates freeze would be very expensive.
“In terms of business help, he’s leaning into possible extension of Full Expensing. But that too costs £10bn a year,” they said.
The focus of the Autumn Statement, on 22 November, would be to unlock unlock private investment, get more people back into work and improve public sector productivity.
Any investment measures would come alongside plans to boost the workforce by tweaking the welfare system for the long term sick.
i revealed this week plans for a reform of the sick note process, including a new hotline to encourage people back to work, as part of a strategy designed to drive down economic inactivity.
And, on Friday, i reported Mr Hunt will announce a push to use artificial intelligence in the public services in order to save money and improve efficiency.
Speaking to Sky News, Mr Hunt said: “What you will hear in this Autumn Statement for growth are measures that will unlock the long term competitiveness of the UK economy.”
Pressed on whether he was ruling out short term incentives such as tax cuts, Mr Hunt said that there were other measures businesses favour that he was looking at.
“Lots of businesses to complain about the time it takes to get approval in the planning system,” he said.
“The manufacturing industry says that they would like more support in very specific areas.
“Lots of business say they find it difficult to recruit the staff they need so we can unblock some of the barriers in the welfare system.”
He added: “There are lots of things that we can do to support the long term health and growth of the British economy.”
