30 October 2018

Budget 2018 – what it means for print

Phillip Hammond's third Budget as Chancellor of the Exchequer today felt somewhat scattered, assisted by higher tax receipts but with the elephant in the room – Brexit still uncertain in its form. We were very pleased to see concrete action on productivity in the shape of an increase in the annual investment allowance and very modest action to assist apprenticeship investment. There were re-announcements of measures pledged earlier in the year, cheap but immediate spending injections across disparate areas and a lack of big giveaways and crowd pleasers.

Here's our first glance at the measures most likely to affect the print industry:

Productivity
It's welcome that productivity is still a priority for the Government (see the Federation's response to their recent Productivity Review). When it comes to firm-level factors that affect it, trade bodies are perfectly placed to help their members improve. But Government must also play its part to support productivity across the board. We have asked for measures to help companies invest in equipment, skills and improvements in their processes. The increase in the Annual Investment Allowance from £200,000 to £1million is welcome. Investment in the UK lags behind other leading economies, so this is a step in the right direction. The extra £1.6bn specifically for R&D is positive – many of our members have already accessed R&D tax relief for their innovative work.

SME access to dispute resolution and redress
Thanks to the efforts of Kevin Hollinrake MP, a Vice Chair of the APPG Print, access to the Financial Ombudsman Service will be expanded to small and medium businesses with a turnover of up to £6.5bn. This will give SMEs an option other than potentially costly court action to resolve disputes. We'll be communicating the details to our members over the coming months.

The costs of running a business
Retailers with a rateable value of below £51,000 will see their business rates cut by one third for two years, a welcome boost for the revitalisation of our high streets. Increasing the Annual Investment Allowance from £200,000 to £1 million for plant and machinery is also good news. For an industry in which costs are often well over £200,000 for a single piece of equipment, this is a welcome move which should provide a quick helping hand to investment.