Corporation tax hike delivers sharp shock to business leaders

The chancellor delivered a Budget that “succeeds in protecting the economy and kickstarting recovery,” but the corporation tax hike will cause a “sharp intake of breath” for many business leaders, the head of employers’ organisation CBI Scotland said last night.

Tracy Black added that attention would now turn to Holyrood, in the hope MSPS will back measures to give the Scottish economy “the boost it needs”.

The majority of Rishi Sunak’s measures were also welcomed by the Federation of Small Businesses (FSB) in Scotland, but the organisation hit out at the chancellor for failing to extend help to firms that have had little or no support during the Covid19 crisis.

Ms Black said Mr Sunak had gone “above and beyond” to protect UK businesses and people’s livelihoods.

She said: “Thousands of firms will be relieved to receive support to finish the job and get through the coming months.

“The Budget also has a clear eye to the future; to ensure finances are sustainable, while building confidence and investment in a lasting recovery.”

Andrew Mcrae, the FSB’S Scotland policy chairman, said the chancellor’s measures gave Scotland’s small business community “more fuel to get through the last lap of this crisis.”

He said: “Specifically, the important move to extend furlough buys local employers important time until the wider economy gets up and running.

“And additional emergency payments for the self-employed means that those that work for themselves aren’t going to be left high and dry over the summer.

“However these measures could have been complemented with a cut in employers’ national insurance contributions to make it cheaper to create jobs.”

Chancellor Rishi Sunak was not drawn on whether there could be a hike in capital gains tax in the future.

Asked if he could rule out an increase in the rate of capital gains tax during this Parliament, Mr Sunak told a briefing: “I obviously can’t comment on fiscal policy, other than on the ones that we’re talking about in the Budget.

“We’ve made the decisions we’ve made on tax and, as we said in our manifesto, we didn’t want to raise the rates of income tax, National Insurance and VAT.

“We have stuck by that because that is important to me to do that.”

The Duke of Edinburgh is “slightly improving”, the Duchess of Cornwall has said.

On a visit to south London, Camilla said of her 99-year-old fatherin-law: “We heard today he’s slightly improving. So, that’s very good news. We’ll keep our fingers crossed.”

Philip, the nation’s longest-serving consort, has spent 15 nights in hospital – his longestever stay.

He has been undergoing tests for a pre-existing heart condition and treatment for an infection after being moved by ambulance to St Bartholomew’s Hospital in the City of London on Monday.

The hospital move heightened concerns for the duke, who will turn 100 in June.

Camilla’s comments were reported yesterday by broadcasters covering an engagement at a community vaccination centre in Croydon.

Buckingham Palace said on Monday the duke was comfortable, adding “doctors will continue to treat him for an infection, as well as undertake testing and observation for a pre-existing heart condition”.

Philip was shielded from view as he left for St Bartholomew’s.

He was initially admitted to the private King Edward VII’S Hospital on February 16 as a precaution after feeling unwell.

Andrew Mcrae of FSB Scotland.

Duchess of Cornwall.