This year’s budget had a strong focus on the UK’s technology industry, including in the Internet of Things and bringing ultra-fast broadband to the whole country. DMA executive director Chris Combemale looks at some of the key economic issues and challenges that the budget raises for the marketing industry at large.
Corporation tax
Corporation tax will reduce to 20% from the start of April.
“We warmly welcome this news, which will make doing business less expensive for businesses of all sizes, particularly SMEs which characterise the bulk of the marketing and advertising sector. This will also make the UK economy more competitive in a global marketplace.”
Internet of things
A promise to invest in the Internet of Things.
“New technologies like the Internet of Things will change the ways people interact with their surroundings, and marketers and advertisers are looking closely at this sector. A boost to UK investment here will help us develop a competitive advantage in the coming years.
Building a northern powerhouse
Leeds and other northern areas will be granted new powers in an attempt to invigorate growth in the north.
“It’s a misconception that the advertising industry lives only in London. Around 16% of our members are based in the north region. Unfortunately the economy outside London has not kept pace with the capital since 2008. Measures to help redress that balance will be good for the industry overall.”
Young people
The government plans to abolish National Insurance for those employing an apprentice from next April. Also, the government will abolish class 2 National Insurance for the self-employed entirely.
“Youth unemployment has been a persistent problem in the UK and any measure that encourages businesses to take on young people is a positive move. Abolishing National Insurance for businesses employing an apprentice, such as the Higher Apprenticeship in Advertising and Marketing Communications1, will mean more young people in training gaining the skills they need to thrive.
“In addition, £4 million to extend the Skills Investment Fund2 for training in film, television, visual effects, video games and animation will help the industry in the future, as these are all skills used in the advertising and marketing sector.”
AND FINALLY –reduction in tax on alcohol.
“Finally, with 1p coming off the cost of a pint of beer, it will give many in the creative sector another incentive to escape the constant electioneering over the coming few months and have a quiet drink.”
By Chris Combemale
Executive director
Direct Marketing Association
http://www.dma.org.uk/