A LATE bid to convince voters, or a big non event? North-East bosses told Andy Richardson, Business Editor, what they'd like to hear in the final Budget statement of this Parliament.

WITH the Budget coming just 50 days before the General Election there is a chance that the Chancellor will use today's statement to pitch for another five years in Number 11 rather than to make any major policy announcements.

But Mr Osborne has a fondness for pulling rabbits out of hats, so there are likely to be a few giveaways that attempt to woo voters, while underlining his record on spending cuts.

We can expect some moves to support business. The Confederation of British Industry and FSB have been urging the Chancellor to make life easier for medium-sized companies, with more investment allowances and extending research and development credits.

Given that Mr Osborne increased the annual investment allowance to £50,000 but it is due to drop back to £25,000 at the end of this year, there's a reasonable chance he will take the opportunity to extend it indefinitely.

The North Sea oil industry has been dealt a massive blow with the falling oil price, and ministers have dropped strong hints the red box will contain measures to support the industry and its supply chain. There's a good chance this will mean dropping the supplementary charge on profits. It's already set to go from 32 per cent to 30 per cent in December, but he could well announce that it will drop even further.

Ted Salmon, Federation of Small Businesses North East Regional Chairman: “The improving outlook for the UK economy is starting to be felt beyond the boardroom with low unemployment, increasing wages and buoyant business confidence amongst our members. In many areas, the foundations are in place. What we now need is to allow the reforms that have been made to bed in, and finish the roll out of those recommendations and reforms still needing to be put into action.

“The Chancellor should avoid the temptation for a pre-Election give away and focus on maintaining fiscal discipline, and delivering supply side reform that will boost long-term growth. This will help to maintain already high business confidence, and support the growth ambitions we are seeing among our members.”

Kevin Brennan, chief executive of Quorn Foods, said: “There’s no doubt that Government policy around R&D Relief and The Patent Box is helping to fuel our growth, and that of other innovative companies, and the next Budget offers the perfect opportunity for the Chancellor to show his commitment to businesses such as ours and take steps to protect and enhance tax relief measures.”

Mike Matthews, Nifco managing director and European operations officer: "We have seen the North-East recovery gain real momentum in the last 18 months and the Government must harness this if we are to build on our progress in the coming years.

"As one of the region’s largest manufacturers, Nifco is acutely aware that we are facing a potential skills shortage in the manufacturing and engineering sectors. The Government must focus on creating incentives and engagement strategies for SMEs to engage in the skills agenda and to make it as simple and straightforward as possible to recruit and develop a skilled workforce including graduates, apprentices and upskilled existing staff. Currently we just don’t have enough employers involved in taking on apprentices, graduates or upskilling existing staff. This is a business imperative for all, not just large firms.

"Energy supply is another key issue. We live and work in an incredibly energy intensive region and the heavy users are all large employers. Energy policy must reflect that and not punish the manufacturers that provide the economic bedrock of the North-East.

"I think it’s also important that the Government maintains its policy of empowering businesses to explore overseas trade. The potential in untapped foreign markets is immense and with our region’s impressive track record in exports, any investment in export support would be welcomed."

Peter Davison, managing director of Billingham-based RPD Builders, said: “As a member of the SME community, I would like to see a Budget that has measures to help SMEs invest, innovate and grow and therefore create jobs and opportunities.

“The Chancellor’s 2014 Budget put SMEs at the heart of economic growth and I would like to see more of the same. The Chancellor should introduce more funding for growth for SMEs across all sectors to propel future UK economic development.”

Rob Charlton, chief executive of technology business Space Architecture:

“This budget will be a huge non-event. There are a few giveaways such as a reduction in a pint of beer but this will be very much a budget for the man in the street – it may include reduction in fuel duty or cigarettes. From a tax perspective there will be no change and little change in any matters for business.”

Douglas Kell, director of the Civil Engineering Contractors' Association in the North-East: “I believe that, coming so close to the General Election, the Government will concern itself more with personal tax allowances, and is also more likely to knock 1p off the tax on a bottle of whisky rather than commit another £100m to road work.

“What we would like to see after the election is continuity of work and steady growth. We also want encouragement to improve the skills bank.

“Quick development without an appropriate acceleration of skills to accompany would lead to higher costs arising from a pay spiral brought on by skilled labour shortage, and this would happen whoever is returned to power.”

Alastair Wilson, Tax Partner at Tait Walker Chartered Accountants:

“Extension of the Annual Investment Allowance to encourage investment in plant and machinery for the manufacturing sector – an area Tait Walker works closely with through its North-East client base. We’ll also be looking for a reduction in business rates, in particular for empty property, relief from employers National Insurance for “new” jobs for example in the technology sector and better use of Enterprise Zones locally to create genuine hotspots of SME growth – for instance a “tech sector” Enterprise Zone.

“Localised reductions in corporation tax for specific sectors would also be welcome for example a reduction in corporation tax in the North East for companies in the offshore supply chain.

“Finally, I’d like to see a reduction in employment tax reporting red tape and a re-introduction of tax relief for corporates for investment in other corporates.”

Ian Malcolm, managing director of ElringKlinger (GB), Teesside-based car parts manufacturer: “I’ll be looking for the Government to deliver what they said they would at the beginning of this Parliament and merge PAYE and National Insurance into a single tax. This is alongside greater support for manufacturing companies in the North East and skills support for engineering and manufacturing sectors, and infrastructure support and improved access to funding.”

Pamela Petty, managing director of Ebac, which is shortly to bring the first British made washing machines for many years to the market, said:

“I’d really like the Chancellor to announce something that would drive demand for British made goods, maybe a tax on imported white goods and textiles or a real financial incentive for manufacturing here at home some of the things we import.

“This country has a proud history of making things, and it is no surprise that the growth we are seeing in the economy is coming at a time when UK manufacturing is on the rise.”

George Rafferty, chief executive of NOF Energy, said: “The industry has made strong representations to the Treasury regarding the fiscal regime in the UK oil & gas sector, which we support, and we hope they are heard. Most significantly there is the need for investment allowances that encourages exploration.

“Exploration is crucial to securing the future of operations in the UK North Sea as it is the catalyst for the entire industry from the recovery of resources through to programmes of decommissioning, all of which involve the support of a technology-led supply chain.”

Warren Portues, co-owner of Stockton-based North Eastern 4x4: “As a small business that services and repairs vehicles and employs five full-time members of staff and three apprentices, I would like to see assurances in the Budget that the Government has no plans to introduce new taxes on diesel powered engines. Such an introduction could have a detrimental effect on the day-to-day running costs of many businesses.”

Kathryn Taylor, managing partner of Gordon Brown Law Firm:

“As a firm we operate one of the biggest residential conveyancing departments in the North-East, so I’ll be looking out for changes to and possible issues impacting the property sector. Hopefully if there are any changes in this area then they won’t be anything too dramatic, unlike the Chancellor’s Autumn Statement, which stated that the rules on stamp duty were being overhauled, catching most residential conveyancing solicitors I know on the hop. Within minutes of the announcement being made clients started calling our firm seeking guidance and calculations of their new stamp duty amounts. Unfortunately, none of us had any warning that the rules were changing and being a busy volume firm, we had numerous clients in the middle of transactions, all of them wanting to know ‘how does it affect me?’ So if I could have one ‘wish’ it would be, if there are further changes in stamp duty or indeed anything else property-related, “can we have a little more warning this time please?”