Rishi Sunak is considering increasing tax breaks for manufacturing companies and factories as part of a budget package to close the north-south divide, The Telegraph has learned.
Senior tax officials are considering increasing the capital relief used by companies to reduce their tax burdens, which would lead to greater investment and help implement the government’s “appreciation” agenda.
Downing Street’s Joint Economic Policy Department has had a number of discussions over the past few weeks about the proposal, which would allow companies to deduct more spending from their profits, which in turn would lead to higher capital spending.
Insiders knowledgeable of the conversations said the move would “mostly” favor cities in the Central Plateau and Northern England with more heavy industries that invest more in equipment than the southern service sector.
It is likely that the blow to businesses in the north will be mitigated by an expected corporate tax hike, which is currently set at 19 percent. Some senior business leaders have admitted that this would be “consideration” for the £ 10 billion they received during the pandemic.
Meanwhile, The Telegraph can also reveal that Mr Sunak is preparing to post “tech visas” in the budget to bolster the UK’s dynamic industry and attract more foreign investment after Brexit.
Boris Johnson is believed to support the proposal as talks are already taking place between senior Downing Street officials and officials.
The Treasury is also considering plans for a new Community Ownership Fund, a pot of money to help local areas buy assets like post offices, pubs and football clubs that would otherwise have to close.
The 2019 Conservative Manifesto set up a £ 150 million fund to help ‘backward’ communities.
Below you will find the production figures for 2019.