Industry reacts to the Budget announcement 30 October 2018London Reporter: Jenna Lomax
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The Chancellor’s Budget announcement means “time to get those raincoats ready”, according to Ian Larkin, CEO of Target Group.
When discussing how the UK budget might affect securities finance, Larkin said: “Now is the time for lenders to be preparing to handle increased levels of borrower contact and the smarter lenders will be gearing up for proactive contact.”
He added: “In recent years there have been big advances in the ability to use technology and data to develop pre-impairment indicators that help identify signs of potential borrower strain before a payment has been missed. As the old adage goes—there is no such thing as bad weather, just unsuitable clothing.”
Luke Davis, CEO and founder of IW Capital, commented: “I am reassured by many of the measures announced in today's Budget—in particular, the feasibility study into defined contribution (DC) pension funds directed to high-growth small and medium-sized enterprises (SMEs) and new business investment measures.”
Speaking of Brexit, he added: “The UK's entrepreneurial economy is well equipped for a resilient post-Brexit future."
Mirroring this, Mark Brownridge, director general of the Enterprise Investment Scheme Association, stated: "This Budget could be entirely defunct in a matter of weeks depending on what happens in the Brexit negotiations. Therefore, this could potentially leave SME investors in dark, particularly in the short term.”
Angus Dent, CEO of ArchOver, explained: “Once Brexit negotiations are on the straight and narrow, the government needs to demonstrate that it believes in the future of British business. The best way to prove this would be to announce a mini-budget focused on advancing SMEs in a still-struggling economy.”
He added: “The Chancellor desperately needs to convince the rest of the world that the UK is still a competitive place to do business—or he risks putting the future of UK businesses in jeopardy.”
“The Chancellor’s corporation tax reduction is the first step in the right direction for British businesses. With the strong likelihood that tariff bearings will go up, a reduction in corporation tax will reduce unnecessary friction that disproportionately affects SME owners.”
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