PwC has released its predictions for George Osborne’s summer Budget, with focuses likely to include decentralisation and regional investment.
The chancellor has made much of the “northern powerhouse” and this Budget would be the time to implement further devolution of tax and spending powers, said PwC.
The company also pointed to a number of other potential announcements that could affect the property industry, including reforming council tax.
Paul Emery, tax partner at PwC, said: “Perhaps most likely is the extension of existing taxes on high-value properties. In December, the government increased the annual charge for properties held in companies by 50% and it could decide to continue annual hikes well above inflation.”
It is likely there will be some mention of the housing shortage, given the attention it is receiving in the media.
Rob Walker, head of real estate tax at PwC, said: “ Announcements could include tax incentives for developing brownfield sites, such as extending capital allowances or stamp duty holidays. Care will need to be taken to ensure any measures do not breach EU rules to prevent competition being distorted.”
Business rates is another key issue for the property industry, and PwC believes this Budget could be the time to make some serious reforms to the business rates system.
Simon Tivey, head of rating at PwC, said: “A head of steam is building behind our recommendation to remove from the business rates system half a million very small properties, most of which pay nothing under the small business relief scheme. This could be a major element of the current reforms.”
