Philip Hammond today delivered the first Budget since the snap election.
Some of our experts at TLT gave their thoughts as the statement was delivered.
Mark Braude, Legal Director, commented:
"Today's Budget has brought an unexpected boost to fast growth technology and innovative companies. The doubling of EIS investment limits for knowledge intensive companies and the increase in R&D tax relief should encourage third party investments and lead to tax savings.
But, the devil is in the detail and the Government is also proposing to introduce a new "risk to capital" test under the EIS rules in order to determine whether a company is a genuine entrepreneurial company and should benefit from EIS relief. This unwelcome new test is likely to add a further layer of complexity to what are already dense rules and provide uncertainty to prospective investors."
Paul Butterworth, partner and head of the social housing team commented:
“The pressure to deal with homelessness has clearly struck a chord with the Chancellor, with Housing First pilots being announced in Manchester, Liverpool and the West Midlands accompanied by a bold aim to halve homelessness by 2022 and eliminate it by 2027.
The 100% council tax premium on empty properties is an interesting policy but it is unknown exactly how this will translate into reducing housing shortages. We don’t know if this will actually lead to such properties being brought into use.
The £44 billion financial support for housing is good news but the true significance of this sum will depend on the proportion translating into grant funding for new builds.
The abolition of stamp duty on purchases up to £300,000 is not to be sniffed at but given how this represents a saving of £5,000, it’s unlikely to prove the tipping point for affordability.”
Linda Convery, partner in the social housing team said:
“The suggestion that the Government may intervene to prevent landowners sitting on land with the benefit of a planning permission is interesting, but could meet with strong resistance and could affect the supply of land negatively rather than positively.
The debate on whether the green belt should be protected from development continues. At the moment, the Government is in favour of protecting it but this could also impede the speed of land supply.”
The full budget document can be found on the government's website.