7 March 2024

‘Modest and Measured' – British Printing Industries Federation

The final Budget before the next General Election didn’t deliver the pleasant surprises anticipated by many. The headline will be the (pre-briefed) 2p cut to National Insurance and perhaps the attempt to thwart Labour’s own fiscal plans by co-opting their policy to abolish non-dom status. Beyond that, the statement didn’t feel like a pre-election Budget designed to shift the polls dramatically in the Conservatives’ favour.  Instead, it suggests a late autumn election, leaving more time for interest rate cuts, drops in energy bills and for disposable incomes to begin to recover.   

The key measures affecting print businesses are: 

• An increase in the VAT threshold from £85,000 to £90,000 from 1 April 2024, taking 28,000 businesses out of compulsory VAT registration. 
• The Recovery Loan Scheme for SMEs (to be renamed the Growth Guarantee Scheme) will be extended until April 2026. The scheme offers a 70% government guarantee on loans to SMEs of up to £2 million in Great Britain, and £1 million in Northern Ireland. 
• Full expensing for leased assets is on the agenda, but only ‘when fiscal conditions allow’ (though a draft Bill will be published shortly). 
• Fuel duty will be frozen for another 12 months, extending the current temporary 5p cut.  

BPIF Chief Executive Charles Jarrold, said: 

"This seems to be quite a modest and measured budget, which after some of the upheavals of the last couple of years, is not wholly unwelcome.  While there was little directly on offer to our sector, it’s encouraging to see more positive forecasts emerging on the economic situation with both growth forecasts being revised modestly upwards, and inflation predictions downwards.  The personal National Insurance reductions may increase consumer demand, boosting the economy, which would be good for the sector, and the same can be said of the confirmation of tax reliefs currently in place for the leisure and creative sectors – these sectors are important users of print, so help there helps us.  We previously welcomed the announcement of full expensing, and the intent to extend that to leased assets will, if it takes place, be another step in the right direction, but beyond that, it is a little disappointing. We were hoping for a clearer recognition of the contribution of UK manufacturing, especially for SMEs. They are the engine-room of UK growth yet are still struggling with high energy costs, Covid loan repayments and mandatory wage increases.  

"We remain convinced that what the UK really needs is an integrated and comprehensive industrial strategy that boosts investment in skills, technology, environmental improvements and infrastructure, properly addressing the productivity and skills challenges that we face. We will continue to lobby Government for a business environment that supports our members’ growth, while reaching out to opposition parties to ensure the voice of print is heard in the run-up to the General Election." 

You can read the Federation’s Budget 2024 representation on our website. 

For the full Budget 2024 documents, visit the HM Treasury pages.