The Plymouth and South Devon freeport has received final government approval.

It will now receive up to £25 million in seed funding to help boost investment and support the growth of regional businesses.

Freeports benefit from a range of measures, including tax reliefs, customs advantages, business rates retention, planning, regeneration and trade and investment support.

Tax incentives include enhanced capital allowances, relief from stamp duty land tax and employer National Insurance contributions for new employees.

Eligible new businesses moving into a freeport tax site, and some existing businesses that expand will also benefit from full business rates relief.

The approval will help accelerate the formation of advanced manufacturing clusters in marine, defence and space sectors, as well as delivering an estimated 3,500 jobs.
Dehanna Davison, Levelling Up Minister, said:

‘Today is a historic day for Plymouth, South Devon and beyond, as the Plymouth and South Devon freeport gets up and running to drive growth and innovation locally and nationally.

‘The freeport is going to shape the fortunes of the Plymouth and South Devon economies by pumping up to £100 million worth of investment across the region.

‘We are maximising the opportunities of Brexit to drive growth and throw our doors open to the world.’

Internet link: PLYMOUTH.GOV.UK

Chancellor of the Exchequer Jeremy Hunt is set to unveil over 30 regulatory reforms to the UK’s financial sector, the government has announced.

The Chancellor will set out plans to repeal, and replace, EU retained laws governing financial services.

Mr Hunt says these reforms will unlock investment and turbocharge growth in towns and cities across the UK.

The plans included a commitment to make substantial legislative progress over the course of 2023 on repealing and replacing Solvency II – the rules governing insurers balance sheets.

As announced in the Autumn Statement, the government will look to announce changes to EU regulations in four other high growth industries by the end of 2023, including digital technology, life sciences, green industries and advanced manufacturing.

Chancellor of the Exchequer, Jeremy Hunt said:

‘We are committed to securing the UK’s status as one of the most open, dynamic and competitive financial services hubs in the world.

‘The Edinburgh Reforms seize on our Brexit freedoms to deliver an agile and home-grown regulatory regime that works in the interest of British people and our businesses.’

Internet link: HM Treasury

The Mortgage Guarantee Scheme will be extended by a year to the end of December 2023, helping people with 5% deposits on to the property ladder, the UK government has announced.

Under the scheme, the government offers lenders the financial guarantees they need to provide mortgages that cover the other 95%, subject to the usual affordability checks, on a house worth up to £600,000.

Launched in April 2021, the scheme has already helped over 24,000 households. It was originally planned to close at the end of this year but will now be extended until the end of 2023.
Chief Secretary to the Treasury, John Glen MP, said:

‘For hard-working families facing today’s challenging economic conditions, it’s right that we continue to help them secure their first home or move into their dream house.

‘Extending this scheme means thousands more have the chance to benefit, and supports the market as we navigate through these difficult times.’

Internet link: HM Treasury website

Chancellor Jeremy Hunt has announced that the Spring Budget will be delivered on 15 March 2023.

Mr Hunt stated that he has commissioned the Office for Budget Responsibility (OBR) to prepare an economic forecast to accompany the Budget.

The Spring Budget will be the Chancellor’s second fiscal event, following November’s Autumn Statement. Mr Hunt used the Statement to reverse many of the tax cuts announced by his predecessor, Kwasi Kwarteng.

Internet links: UK Parliament website

Tax non-compliance during the pandemic cost the UK government £9 billion, according to a report from the National Audit Office (NAO).

HMRC redeployed around 1,350 workers to Covid-19 support schemes throughout 2020/21, shrinking the number of those working on tax compliance, the NAO said.

This reduced the tax authority’s capacity to investigate people and businesses not paying the correct levels of tax, according to the NAO.

Before the pandemic, tax revenues from HMRC’s compliance work were on average 5.2% of its total revenues. This dropped to 4.2% between 2020 and 2022 causing a £9 billion reduction in revenues.

Gareth Davies, Head of the NAO, said:

‘HMRC had to move swiftly to reallocate resources to Covid-19 schemes, as the circumstances of the pandemic demanded. However, this directly affected its ability to investigate cases of people and businesses not paying the right tax.

‘There is now a risk that more people ultimately fail to pay the right tax or escape investigation or prosecution. It is concerning that HMRC’s planning indicates that non-compliance may grow following the pandemic. The next two years are critical, and swift action is likely to be needed to stem potential losses.

‘There is little doubt that HMRC’s compliance work offers good value for money, but it needs to evaluate its performance more consistently. Improving the effectiveness of HMRC’s compliance work can help maximise the amount of money available for public services in a challenging economic context.’

Internet link: NAO website