Below is the stakeholder reaction on specific measures within the Growth Plan, including: alcohol duty, off-payroll working rules (IR35), VAT-free shopping and the Seed Enterprise Investment Scheme
Nuno Teles, Managing Director, Diageo Great Britain said: “Today we raise a Guinness to the Chancellor and PM, as a freeze in alcohol duty is great news for pubs, restaurants, and tourism.
The old duty system was an outdated mess, now it will recognise the pleasure and jobs that spirits and cocktails generate in Britain. These reforms will help UK distillers invest and go for growth. Cheers, Chancellor!”
Chair of CAMRA, Nik Antona, said: “The Chancellor’s announcement that the new rate of duty for draught beer and cider will go ahead from August 2023 is fantastic news for the great British local as the tax system will recognise that beer, cider and perry served in a pub or social club should be taxed at a lower rate to alcohol bought in the likes of supermarkets.
“Crucially, this new lower rate of tax for draught beer and cider will now apply to containers of 20 litres and over and bag in box products – and not the larger 40 litre containers originally planned for – meaning smaller breweries, cider producers and pubs can all benefit.”
“This ground-breaking policy should help pull consumption into pubs, clubs and taprooms helping to encourage pub-going and keeping our beloved locals viable, alive and thriving.
“We are also delighted to learn that the Treasury will consult on changes to the definition of cider for tax purposes. We will be making the case for all cider to contain at least 50% fresh fruit juice, to ensure that consumers are getting a high-quality product, and to create renewed demand for acres of orchards that are currently being wound down at detriment to our natural environment.”
UK Spirits Alliance, which represents over 260 distillers across the UK, said: “Today’s decision is a vote of confidence in the UK’s iconic spirits sector, and a welcome relief for British distillers and consumers alike. Our sector, like many others, has been impacted by inflation and rising costs across the supply chain. The announcement by the Chancellor today, and the Government's announcement of a package of support measures for businesses and consumers, is a major boost to the industry".
“This decision will provide spirits producers across the UK with the headroom to continue to innovate and invest in the future growth of the country, helping to fly the flag for British products across the globe. We also welcome HM Treasury sharing its response to the consultation on the alcohol duty reforms in the UK, and look forward to working with the Government and HM Treasury to implement these reforms.”
Andy Chamberlain, Director of Policy at IPSE said: “We are delighted that the new Chancellor agrees with what we have been saying for years – that the 2017 and 2021 reforms create unnecessary complexity for contractors and businesses. It is with huge relief that we welcome this dramatic shift in government thinking”
“As delighted as we are with the news, we remain concerned that the underlying IR35 rules will stay in place, and we hope to work with the government to make further progress on this issue in the weeks and months ahead.
“But for now, this is a watershed moment and will be a tremendous boost to thousands of contractors who have been unfairly penalised by these damaging rules.”
Founder of Enterprise Nation, Emma Jones CBE, said: “Thanks to the removal of IR35, many experienced individuals that left the employment market will now return.”
John Holland-Kaye, CEO of Heathrow Aiport, said: “The return of tax-free shopping for international visitors is great news for British businesses. We want to hear the tills ringing on our shores as visitors make the most of the UK’s world-renowned retail, not lured away to Paris or Milan when we know how competitive our offer is. The boost this brings will spread far beyond our airport terminals, and reach high streets and ports up and down the country, without even mentioning the extra spend visitors make on hospitality and leisure. Thanks to this added incentive, the Government is strengthening the offer of a truly Global Britain.”
Chief Executive of The Association of International Retail, Paul Barnes, said: “This is great news and a huge boost to UK retail, tourism and hospitality.
“Britain will now be the only country in Europe where the 447 million EU citizens can come to do tax free shopping. This decision will create a whole new element to Britain’s already successful tourism industry.
“It will be good for the London International Centre but also for regions throughout the UK. Most regional airports serve European destinations so today's announcement will boost visitor numbers and spending all across Britain.
Industry is keen to work with the government develop, as soon as possible, a new tax-free shopping scheme that secures Britain's position as the best place in the world to come shopping.”
Dom Hallas, Executive Director, Coalition for a Digital Economy (Coadec) said: “Startups will be cheering the planned increases to the Seed Enterprise Investment Scheme (SEIS) and long-term commitment to other schemes including the Enterprise Investment Scheme (EIS) . Along with changes to pension funds and more capital through the British Business Bank. It’s a strong signal that the government wants growth - and that growth will come from UK tech startups.”
CEO of ScaleUp Institute Irene Graham OBE, said: "We welcome the Government's Growth Plan which puts scaling up at its centre. Since its inception, the ScaleUp Institute has highlighted the importance of long-term patient capital, investment and access to skilled talent as critical to the scaleup economy. The pension cap reforms and proposed Long-term Investment for Technology & Science (LIFTS) initiative are vital steps forward, alongside the expansion of the Seed Enterprise Investment Scheme (SEIS) and continuing support for the EIS and VCTs. These initiatives will unleash greater flows of capital into scaleup companies who are key drivers of our future economic growth. We will continue to work with the Government as these evolve."
Priya Lakhani OBE, Founder CEO of CENTURY Tech said: “The Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) have been instrumental in encouraging investment and innovation in startups and scale up technology companies in the UK. The expansion of SEIS is a win for UK entrepreneurship and the commitment by the Chancellor to continue look at ways of expanding these schemes is most welcome.”
PensionBee CEO, Romi Savova, said: “By guaranteeing the future of the Enterprise Investment Scheme (EIS) and expanding the parameters of the Seed Enterprise Investment Scheme (SEIS), the Chancellor has given UK startups a major boost.
“As an integral part of the UK’s early-stage funding landscape, these schemes have greatly supported many new technology companies, including PensionBee prior to our IPO in 2021.
“Due to the increase in the generosity and availability of these schemes, I hope to see SEIS and EIS investments continue to support the most innovative young businesses in the UK.”