CFOs have shared their thoughts on what they would and would not like to see in the upcoming Autumn Statement.
With Prime Minister Sir Keir Starmer already keen to state this budget will be “painful,” it won’t be pleasant reading for many across the country; sentiment among iFD’s community of part-time and fractional CFOs, is certainly one of nerves, according to a survey conducted by the brand.
Tweaks to research and development tax scheme reliefs and allowances are the most common thing people would like to see addressed in the Statement, particularly among small businesses.
That includes tax credit support, increased tax breaks for those investing in R&D and improved incentives for innovation.
Other key parts of the Statement CFOs would like to see include a reform of business rates and greater access to grants and investments, focused on skills training and education, while also helping businesses achieve their climate change objectives.
One CFO was especially optimistic about the Statement, despite Starmer’s warning shots, suggesting: “Unlike the past labour governments, it seems that Starmer’s government will not just spend and give money away…so I’m less fearful than with other labour governments in the past.”
Greg Eaton, Managing Director at Isosceles Finance, says: “Our community of Fractional CFO’s are clearly worried about the impact of the upcoming budget on the businesses they support. They would like to see more support for innovation to enable growth and are concerned about the impact a rise in Capital Gains Tax would have on investment.”
Of course, there were a few concerns too, the main being the increase of taxation, particularly Capital Gains Tax, with many reports suggesting there will be some form of hike. An increase in Corporation Tax and Inheritance Tax are also among the announcements to come out of the Autumn Statement that are among the least desired.
One CFO claimed, “that the easy targets such as successful businesses/individuals will be targeted again, leading to them possibly moving away from the UK.”
An exodus of business owners from the UK is something multiple CFOs had worries about, leading to further tax hikes down the line affecting those who are staying. Reports are suggesting that Chancellor Rachel Reeves could impose an ‘Exit Tax’ to try and manage this.
Other areas iFD’s community of fractional CFOs do not necessarily want to see include higher taxation on higher earners and increased staffing costs. Also, reductions in research and development tax scheme reliefs and allowances, something that most CFOs in the study would like to see reformed.
