Last month, Chancellor Jeremy Hunt revealed his Spring Budget which included a range of measures designed to promote economic growth and curb inflationary pressures.
Some of the key points from the budget included Hunt announcing the planned increase in corporation tax to 25% and a reduction in public spending.
But what do the government’s economic plans mean for the industry and businesses like Technoprint? In this blog we’ll explore the significant takeaways from the Chancellor’s first full budget.
Full expensing scheme
One of the major announcements from the Spring Budget that’s been warmly received among industry leaders has been the introduction of the ‘full expensing’ scheme for businesses.
From this month until the end of March 2026, businesses like ours can claim 100% first-year relief on plant and machinery expenses which could provide a real boost to the UK manufacturing sector.
The full expensing scheme replaces the 130% super deduction and runs parallel to the 50% first-year allowance for investments in capital known as ‘special assets’ such as electric wiring or solar panels.
The scheme could really help to make investments in capital more feasible during leaner periods.
Fuel duty freeze
Another reason to be cheerful when it comes to the budget is the Chancellor’s decision to freeze fuel duty for another 12 months in a bid to help cut inflation within the economy.
Mr Hunt announced that he would extend the 5p a litre cut in petrol and diesel duty and freeze any increases until March 2024, which is a welcome relief for the UK’s supply chain.
In truth, it would have been difficult for SMEs to incorporate a possible fuel duty hike, given the already sky-high operating costs and would’ve put significant pressure on businesses.
For Technoprint, the fuel duty freeze is a boost as it allows us to continue to make important deliveries, efficiently and effectively to our customers without having to incur higher costs in a difficult economic climate.
End of the Energy Bill Relief Scheme
However, print industry leaders and SMEs were left disappointed at the Chancellor’s decision not to extend the Energy Bill Relief Scheme beyond March.
Its replacement the Energy Bills Discount Scheme will not offer the same levels of support for small and medium-sized businesses that its predecessor gave.
Firms that entered into a fixed contract last year, will see substantial increases in their energy costs due to the fact that they’re locked into a high price and with this new scheme in place will receive a much smaller relief package.
While it may not have a direct impact on the industry, as a business located in the North West, it’s great to see that local regions such as the Greater Manchester Combined Authority and the Liverpool City Region are among the 12 areas where new Investment Zones will be launched.
The Investment Zones will help to drive growth in sustainability, manufacturing, and innovation in nearby areas such as Greater Manchester and Merseyside and will likely provide a real knock-on boost to the entire region.
However, it was disappointing to see the building of the Birmingham to Crewe and Manchester section of HS2 delayed, which could mean UK industries like print will miss out on key foreign investment.
It’s also a blow to connectivity within the UK as travel between the regions and London remains difficult. Improving connections can help companies like ours to grow our customer base and enjoy more face-to-face meetings.
If you think that Technoprint can provide the solutions that your business needs, then get in touch with us here to find out more.