Law firm says Budget unlikely to boost business confidence

The chief executive of one of the Midlands fastest-growing law firms said today’s Budget was unlikely to provide the business community with the confidence it needs to thrive. 

Neil Lloyd, head of FBC Manby Bowdler which has offices in Birmingham, Wolverhampton, Knowle, Shropshire and Worcestershire, said Rachel Reeves had damaged her credibility with a series of U-turns before today’s speech. 

Neil, who is also chairman of the Training and Manufacturing Group, said: “The Chancellor found herself in a very tight corner – partly through her own doing – and today’s speech very much reflected that. 

“Business confidence is very fragile at the moment – and the Chancellor’s U-turn over income tax spooked the markets even more and has certainly undermined her standing with business leaders.   

“We know that businesses have been delaying investment and hiring decisions while they wait to see what the Chancellor had to say. I’m not sure that today’s speech will inspire the confidence we need to get the economy growing again. 

“The new Mansion Tax will stall the top end of the housing market – which in turn will filter down through the whole chain and stifle property sales. A reform of the Stamp Duty Land Tax would have been much more warmly received. 

“Increasing taxation on both business and individuals – as today’s Budget will do - takes more money out of circulation and prevents the sort of investment we need to get the economy moving again.  

“Limiting the amount workers can pay into their pensions through salary sacrifice schemes seems to be penalising people for doing the right thing and adds additional cost to both employees and employers at a time when they can ill afford it. 

“And our farming clients will feel let down – but not surprised - that their powerful campaign against agricultural inheritance tax rules has not resulted in them being reversed, although allowing the transfer of the 100% relief allowance between spouses is a step forward.” 

But Neil said there were some announcements to welcome in today’s speech.  

“The decision to bring down energy bills for 7,000 key firms is certainly welcome and I was pleased to hear the action to make training for under-25 apprenticeships completely free for Small and Medium Sized Enterprises and the £820million set aside to guarantee every young person a place in college, an apprenticeship or personalised job support.” 

FBC Manby Bowdler is one of the region’s most successful law firms, employing more than 200 people.   

Turnover topped £16 million in the last year and the firm has plans to double its size in the next 24 months. 

Ends

Editors notes

FBC Manby Bowdler LLP is a 30-Partner award winning regional law firm focused on and committed to intelligently delivering stellar service to its customers.

The firm's approach is 'One Team' and is committed to delivering the greatest quality of service and advice possible. FBC Manby Bowdler's Client Charter explains the firm's promises to clients about the stellar service experience they can expect to receive.

FBC Manby Bowdler LLP is recognised in the 2019 Legal 500 Directory as a top tier Firm for Agriculture & Estates, Contentious Trusts & Probate, Family, and Commercial Litigation.

For further information, please visit www.fbcmb.co.uk, or follow the firm on Twitter @FBCManbyBowdler.