Hunt refuses to extend super deduction tax break for firms

BRITISH businesses face a hammer blow this week as Jeremy Hunt has refused to extend the super deduction tax break.

The scheme was the brainchild of Rishi Sunak who as Chancellor in 2021 wanted to stimulate businesses hit by the Covid pandemic by giving significant tax breaks to firms that invested in new infrastructure, plant and machinery assets. The tax break has been hailed as a boon by leading businessmen but is due to expire in March next year.

Many have called for the scheme to be extended but Chancellor Hunt will make no such commitment on Thursday.

A source close to the Treasury said: ‘There will be no commitment to extend the super deduction. Hunt will not extend it next week.’

BT chief executive Philip Jansen said earlier this month that the scheme was ‘a major success, not just for our industry’ adding it had enabled the creation of 4,000 jobs across BT since its introduction.

Allowances like the super deduction can make a big difference, particularly considering the upcoming increase in corporation tax.

The CBI also wants to see an extension of the ‘super deduction’ to allow tax breaks on capital spending.

It comes as Hunt prepares to unleash tax hikes and spending cuts in a bid to balance the books. The source added: ‘There will be no tax cuts or spending increases. This will be grim.’