The UK budget 2018 released on Monday promised an end to austerity cuts, a new digital services tax and more funds to the NHS. But what does this last budget before Brexit mean for the private banks and wealth managers?
PBI has been canvassing some responses:
Garry White, Chief Investment Commentator at Charles Stanley
“No huge changes in the budget, austerity won’t end until the spending review and all dependent on the Brexit deal”, White said in a tweet.
Arjun Chopra, Head of Private Capital UK at Investec Private Bank
“The Chancellor stated that ‘encouraging entrepreneur members must be at the heart of our dynamic economy’, but we don’t believe this Budget has honoured this.
“Whilst we’re pleased that the Chancellor has decided to keep Entrepreneurs’ Relief (ER) – it does go some way in encouraging entrepreneurs to start businesses, aiming to provide an environment in which they are able to take risks, grow and ultimately create jobs and value for the UK economy – in Investec’s opinion, the ER scheme as it stands is expensive, too narrow in scope and benefits only a small proportion of UK entrepreneurs.
“We would like to see the government set out new legislation that supports entrepreneurs in the way that it was intended to do – benefitting the numerous entrepreneurs in the UK who help to maintain and advance the UK’s reputation as a highly innovative country.”
David Durlacher, CEO of Julius Baer International
“I am encouraged to see the UK Government’s continued commitment to entrepreneurs, with the decision to maintain Entrepreneurs’ Relief and extend the qualifying period from 12 months to two years.
“We are seeing phenomenal growth among UK entrepreneurs and at Julius Baer, we are onboarding more entrepreneurial clients than ever before. With 24 enterprise zones around the country thanks to investment by successive governments in the Northern Powerhouse, we have seen the number of millionaires in the North West grow by 10% year-on-year, the fastest rate in the country.
“If you look at the UK market long-term, it has been a hotbed of entrepreneurialism over the decades. Therefore we believe that the UK will continue to punch above its weight on a global scale, despite Brexit.”
Chris Groves, partner at Withers
“In one of the most febrile political environments in living memory, the Chancellor introduced a welcome note of certainty, emphatically stating that ‘I didn’t get into politics to put up taxes’.
“This will be welcome relief to HNWIs, but there remains considerable uncertainty as a result of the Brexit negotiations, which could see a new Chancellor in No 11 or a change in government and considerable scope remains for changes in the future.”
Sam Smith, CEO of finnCap
“We welcomed the extension of the entrepreneurs’ tax relief announced at last year’s Autumn Budget, and are pleased to see no further changes in this year’s budget
“With Brexit imminent, we need to incentivise our nation’s entrepreneurs more than ever to help create wealth and build a dynamic economy, both crucial elements in supporting our vital public services and benefiting the UK as a whole.”
Toby Ryland, corporate tax partner at H W Fisher & Company
“Chancellor, Philip Hammond, has increased the investment allowance to £1m once again – from £200,000 – for the next two years.
“This may well simply be an attempt to encourage businesses to invest in machinery and other equipment in order boost productivity. But, equally, Brexit uncertainty has been holding back investment and Mr Hammond clearly wants to give it a shot in the arm by raising the tax relief again in case Brexit turns out worse than anticipated. Whether it works, however, is another matter.”
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