David Jones takes a look at the measures announced in the Budget 2021.
Chancellor Rishi Sunak has delivered his eagerly awaited Budget - but what implications does it have for the property sector?
David Jones, MD/Head of Planning takes a look at the measures proposed.
The eagerly awaited Budget feels like a measured and proportionate response, balancing job retention and investment against a road map for higher business taxation. As a property professional I will focus my commentary to initiatives specifically impacting upon the property world.
Firstly, the extension of the Stamp Duty holiday for house purchases and the staggering of the end of the holiday period is to be welcomed. The original targeted end at the end of March created an unwelcome cliff edge which risked stalling the housing market.
The provision of support for first-time buyers and return to the heady days of the 95 per cent mortgage will undoubtedly act as a stimulus, but with no real policy commitment to increase housing supply the risk is that this measure fuels house price inflation.
The extension of the business rates holiday will help those in the retail, hospitality and leisure sectors although my fear is this is simply a sticking plaster which does not seek to address endemic problems within the high street.
The Chancellor has not sought to redress the imbalance between physical retailing and online retailing - perhaps one can hope this is something for the future, although time is running out for our high streets.
The Corporation Tax increases seem unavoidable and I support the tapered increase with a degree of protection for smaller businesses. The new super deduction reducing taxable profits by 130 per cent of the costs in investing in new equipment is a shrewd move and should encourage investment.
Finally the shift towards a greener Britain is supported with funding for various green initiatives, including energy storage and incentives to increase the production of green energy crops and forest products.
David Jones is Managing Director/Head of Planning at Evans Jones Ltd, Property and Planning Consultancy, based in Cheltenham, with offices in London and Reading.