A CUMBRIAN accountancy firm has welcomed the new budget announced by the Chancellor yesterday.

Chancellor of the Exchequer, Jeremy Hunt, revealed the Government’s Spring budget on Wednesday, outlining the current state of the British economy and what we can expect to see the cabinet deliver over the coming months.

Prior to the official Budget announcement, it was revealed that the chancellor had cancelled the planned £500 hike in energy bills which was due to come into force next month, capping energy prices at £2,500 and extending the support for an extra three months until June.

Hunt began the Budget statement by stating that he expects inflation to fall from 10.7 per cent to 2.9 per cent by the end of 2023.

He followed up with an announcement of £100million being given to charities to continue their hard work and pubs will see a more generous draught relief which will be up to 11p lower than relief for supermarkets, citing Brexit as the reason this is possible.

He also states that he wants to lower energy costs, business taxes and support growth industries, and followed up by introducing a new tax credit for small and medium sized firms that spend 40 per cent of their expenditure on Research and Development.

Leading Cumbrian accountancy firm robinson+co, who have offices in Workington, Whitehaven and Gosforth, say that the budget is positive for business growth, especially within Cumbria.

Accountancy and Tax Partner at the firm, Brett Bennett, said: “The Chancellor’s objective for this budget was one of 'growth'.

"With his opening statement advising that the UK economy is avoiding a 'technical recession' and growth forecast to be 1.8 per cent next year, there was optimism on what was to follow.

“Some of the key points that are welcome, particularly for firms operating in West Cumbria was the announcement of Nuclear Energy being reclassified as an environmentally sustainable energy source which attracts renewable specific tax reliefs.

“Other key measures announced have been documented and known for some time, which has given businesses and leaders time to adapt.

“These measures include an increase in the corporation tax rate from 19 to 25 per cent for firms with more than £250,000 of taxable profits.

"As expected, businesses with taxable profits below £50,000 will continue to pay at the current 19 per cent, effective from April.

“In addition, the removal of limits on the amount of tax relief on qualifying capital expenditure over the next three years will mean that a comparable tax relief is received after the removal of the 130 per cent Super Deduction from the end of the month.”