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Contract talks: How to avoid the ‘battle of the forms...

1st February 2024

Sponsored Article

TERMS and conditions are legal contracts that govern the use of a service or product. They establish the terms of the relationship between the parties and mitigate against potential disputes.

Terms and conditions are important to outline the rules and regulations around the use of a service or product...

Where employers head to find their stars of the future

1st February 2024

Sponsored Article

BUSINESSES are only as good as the talent they hire... and many leading businesses turn to the MK Job Show for their stars of the future time and again.

Showcasing thousands of jobs and visited by tens of thousands of active and passive job seekers , the last event succeeded in pre-registering over 15...

Hate paying taxes? Read on…...

1st February 2024

Sponsored Article

I HATE paying taxes writes Tony Byrne (pictured above), managing director of Wealth & Tax Management. Why? Because I think the government taxes us too heavily and is very inefficient and wasteful when spending our money.

Virtually everything the government does could be done better in the private...

I trust my business partner. So why do we need a shareholder...

2nd January 2024

Sponsored Article

Debbie and Richard run a successful printing business. They have worked together for 25 years. Debbie is 58 years old and Richard is 50 years old.

Debbie holds 75% of the issued shares. Richard owns the other shares and both are directors. However, Debbie has decided that she has had enough in...

Maximising R&D tax credits in the UK through pension...

2nd January 2024

Sponsored Article

PENSION contributions and Research and Development tax credits may seem like separate financial considerations. But a strategic alignment of the two can yield substantial benefits for businesses in the United Kingdom.

This synergy not only aids businesses but also stimulates innovation and economic growth.

LATEST NEWS...

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Leading economist joins MHA as accounting and...

23rd February 2024

RESPECTED international economist Professor Joe Nellis is working with accounting and advisory firm MHA as its in-house economic advisor.

Mr Nellis (main picture),...

Advice firm appoints new practice leader for...

23rd February 2024

BUSINESS and financial adviser Grant Thornton UK has appointed Charlotte Anderson as its new practice lead for Milton Keynes, Cambridge and Chelmsford.   She...

MKEBC launches ground-breaking report into impact...

21st February 2024

THE CONTRIBUTIONS of its ethnic business community to the Milton Keynes economy are to be quantified in a ground-breaking new report.

Milton Keynes Ethnic Business...

Business

Leading economist joins MHA as accounting and...

RESPECTED international economist Professor Joe Nellis is working with accounting and advisory firm MHA as its in-house economic advisor.

Mr Nellis (main picture), who is one of the country’s best-known economists, is Professor of Global Economy at Cranfield School of Management and received a CBE in the King’s 2024 New Year’s Honours list.

He has four decades of experience commenting on UK, European and global macro-economic trends.

MHA partner Atul Kariya said: “Joe has been a friend of the firm for a long time. His insights and extensive knowledge on current trends, predictions and the economic landscape for both the UK and global economy have been of real benefit and value to our clients.  We are delighted to welcome Joe to the MHA team”.

Professor Nellis said: “I have worked closely with MHA for many years and watched it grow from strength to strength at impressive speed.  I very much admire their ethos and enthusiasm, so I am delighted to become part of the MHA team in this way and add my voice to theirs.”

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Joe Nellis, Professor of Global Economy at Cranfield School of Management and economic advisor at accounting and advisory firm MHA, assesses the landscape ahead of the Spring Budget due to be delivered by Chancellor of the Exchequer Jeremy Hunt on March 6. 'The UK economy is flatlining and is 10% smaller than it should be. The country needs a Budget for growth not for votes. It won’t get it.'

His Budget speech will see a Chancellor trying very hard to pull some rabbits out of the hat to appeal to his backbenchers and to his supporters in the media.

He will want to try and convince a sceptical public that taxes are coming down and the UK economy is ‘turning a corner’.

The reality is that, like any good magician, he will be selling an illusion.

While we might see a small in income tax or national insurance or an increase in IHT rates that could create a short-term blip in popularity, the reality is that thanks to fiscal drag, the overall level of taxation paid by middle-income UK taxpayers will remain at its highest for more than 70 years.

Most economists would agree the Chancellor’s wriggle room is limited at best unless he goes down the route of significant cuts to public spending. He is truly stuck between a rock and a hard place.

Away from the Westminster bubble, the reality is that the UK economy is on life support and has been for four years. If the UK had maintained the sort of growth rate achieved between 2010 and the outbreak of Covid, we could have expected the economy to be about 10% bigger than what it is today.

By now it desperately needs a shot of adrenaline to drive investment as the engine for growth or face a possible case of economic hysteresis. The longer it takes for the patient to get better, the harder it will be to really get well.

Productivity improvements and growth have flat-lined. This has far-reaching implications for all of us in terms of future living standards, government tax revenue, and support for public sector budgets.

So, what should this government and the future government, which will face very similar challenges, do to jump-start growth?

We think the Chancellor should do the decent thing, ignore any short-term political gains, and set out a 10-year business growth plan to reverse half a decade of stagnation. Certainty and long-term are what the country needs now, not short-term political posturing.

Central to this is cutting corporation tax by 5% to stimulate business growth and investment from UK and overseas businesses. It wouldn’t be as politically popular as a 2p cut in income tax, but it will have a far wider and longer-term impact on the health of the nation’s finances, necessary to fund rising public sector costs and, yes, eventually to pay for income tax cuts.

Allied with this, we are recommending the re-introduction of super deductible capital allowances as the former Chancellor introduced during COVID, but this time on steroids. Again, to stimulate investment and growth at far less cost than expensive income tax cuts. The policy would pay for itself given the likely spend on capital equipment and infrastructure.

While this will very much be a budget for votes, the UK economy needs a budget for solid, sustainable economic growth this March and other Budgets to come.

Advice firm appoints new practice leader for Milton Keynes office

23rd February 2024

BUSINESS and financial adviser Grant Thornton UK has appointed Charlotte Anderson as its new practice lead for Milton Keynes, Cambridge and Chelmsford.   She...

MKEBC launches ground-breaking report into impact of ethnic businesses on city’s economy

21st February 2024

THE CONTRIBUTIONS of its ethnic business community to the Milton Keynes economy are to be quantified in a ground-breaking new report.

Milton Keynes Ethnic Business...

MK Community Foundation appoints new management for its property and land portfolio

15th February 2024

COMMERCIAL property consultancy Kirkby Diamond is to manage the portfolio of premises and land owned by Milton Keynes Community Foundation.

The grant-making charity...

‘A brilliant initiative’: The Apprentice star Nick Hewer backs the Franklins £50 Challenge

14th February 2024

FORMER star of the BBC series The Apprentice and Countdown presenter Nick Hewer has shown his support for the Franklins £50 Challenge in a social media video. Lord...

Business will have its say as councils prepare to take on SEMLEP’s work

13th February 2024

FINAL preparations are being made for the transfer of the functions of the South East Midlands Local Enterprise Partnership into the hands of the sub-region’s local...

Vehicle giant Nissan opens its R&D centre to showcase STEM career opportunities

9th February 2024

MORE THAN 100 students gain a rare glimpse behind the scenes at vehicle manufacturer Nissan’s research and development facilities in Bedfordshire.

The Driving...

Financial

Leading economist joins MHA as accounting and advice firm&#...

23rd February 2024

RESPECTED international economist Professor Joe Nellis is working with accounting and advisory firm MHA as its in-house economic advisor.

Mr Nellis (main picture),...

Advice firm appoints new practice leader for Milton Keynes...

23rd February 2024

BUSINESS and financial adviser Grant Thornton UK has appointed Charlotte Anderson as its new practice lead for Milton Keynes, Cambridge and Chelmsford.   She...

Legal

‘A brilliant initiative’: The Apprentice star...

14th February 2024

FORMER star of the BBC series The Apprentice and Countdown presenter Nick Hewer has shown his support for the Franklins £50 Challenge in a social media video. Lord...

Law firms celebrate completion of merger deal

1st February 2024

EXPANDING Milton Keynes-based law firm EMW has completed its merger with Northampton-based practice SP Law.

The deal is part of EMW’s growth plans and means a...

Bedfordshire

Leading economist joins MHA as accounting and advice firm&#...

23rd February 2024

RESPECTED international economist Professor Joe Nellis is working with accounting and advisory firm MHA as its in-house economic advisor.

Mr Nellis (main picture),...

Business will have its say as councils prepare to take on...

13th February 2024

FINAL preparations are being made for the transfer of the functions of the South East Midlands Local Enterprise Partnership into the hands of the sub-region’s local...