The Chancellor announced that companies would be able to reduce their tax bill by 130 per cent of the cost of investments, in a move he hopes will prompt bosses to spend money rather than sit on cash reserves to see how quickly the economy recovers. The move is unprecedented for a British Government and will last for the next two years.
Stella Amiss, tax partner at PwC, said that the move could particularly benefit Yorkshire and the North.
She said: “It will play quite strongly to those businesses who were sitting on the fence to see how the economic recover plays out. It could really help boost industry and jobs. The challenge will be what happens after the two years finish.”
Nick Garthwaite, chair of West & North Yorkshire Chamber of Commerce said: “This will provide a major enticement for firms to invest and grow, helping to boost productivity and the wider economic recovery.
“We know there is pent-up demand in the economy and that the pandemic forced many firms into shelving investment proposals.”