Tax breaks will benefit low-income earners insists MP
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THE Budget set out by the Chancellor of the Exchequer, George Osborne, on Wednesday will be a boost for jobs in the North and help encourage growth, according to local MP John Thurso.
However, the leader of Caithness Chamber of Commerce said she could not find much evidence of this and is waiting to see the longer-term effects.
But Trudy Morris does believe a raft of measures to boost the oil and gas industry in the North Sea could have a potential windfall for Caithness.
The chief executive said the county is in a top position to cash in on new offshore developments.
“We hope the major package of tax changes to boost oil and gas extraction in the North Sea, along with £3 billion new field allowance west of Shetland, will produce material benefits in terms of decommissioning and for new developments,” she told the John O’Groat Journal.
“Caithness is well placed to capitalise on oil and gas opportunities west of Shetland in terms of its expertise and proximity.”
Ms Morris, however, remains sceptical and disappointed about some of the measures set out.
“We are disappointed that the chancellor did not go further with the five per cent VAT reduction and at least extend this to all tourism businesses rather than just ski lifts,” she said.
“Tourism is a valuable industry to this area as well as Scotland as a whole.”
The business chief is also disappointed the planned fuel-duty rise – implemented before the Budget – is still going ahead in August.
“With fuel prices at a record high, this continues to put a strain on businesses,” she said.
“The chancellor needed to deliver a budget for business which would allow firms to drive growth, invest and create jobs. We do not see much evidence of this but as with every Budget and government initiative, we await the detail and will measure the benefits to business.”
Ms Morris added the chamber is pleased the cuts in the headline rate of corporation tax have been accelerated and extended.
Next month corporation tax will get a two per cent cut to 24 per cent, with a further drop of two per cent the following year.
Smaller firms are also expected to benefit from a simplified tax system.
Moving away from business, John Thurso said the fiscal plans will benefit low and middle-income earners across the North by way of an increase in the amount people can earn before paying tax.
The other big change – the top tax rate of 50p being cut to 45p – will make sure those earning over £150,000 will pay their “fair share”.
“It is only right that those with the broadest shoulders and who have benefitted most from the opportunities available to them pay their fair share of tax,” said the local MP.
“What we have seen in this Budget is a package that will provide tax cuts for working families on low and middle incomes.”
John Thurso said next year nearly 4000 people in the Highlands will be lifted out of income tax altogether as a result of the increase in the tax threshold.
Increasing it to £9205 will benefit 94,000 low and middle-income earners “right across the Highlands”.
