The Summer Budget will be remembered as a reforming one, and and when looking through the headlines and examining the detail, there are a number of important measures that could impact businesses in the North-East, writes David Elliott.

Firstly, the positives.

Companies will be able to look forward to further reductions in the corporation tax thanks to George Osborne’s determination to offer the lowest rate in the G20.

The UK’s current rate of 20 per cent will be reduced in two stages, to 19 per cent in April 2017, and 18 per cent from April 2020, and will affect all companies regardless of size.

For smaller businesses in the region, the increase in the NIC threshold to £3,000 will be an incentive to take on more staff.

Similarly, the measures intended to promote investment into business infrastructure and machinery have been improved.

From the beginning of next year, corporates in the UK will each be able to get immediate relief on up to £200,000 of capital expenditure.

It should provide a fantastic boost to small and medium-sized businesses in the region that require stability and certainty in order to make key investment decisions.

The big question for all employers though will be the compulsory National Living Wage to be introduced as of next year.

Many companies already pay such a wage, but for those in a sector that traditionally pays at the lower end, such as home care, retail, leisure or hospitality, the question will be to what extent the increased cost can be passed on to customers.

The likes of retail and leisure industries may well profit from consumers having more money in their pockets, as a result of higher wages and the increase in the tax-free personal allowance albeit following tax credit reductions, but time will tell whether other sectors will see the same sort of benefit.

Finally, once again we have seen the Northern Powerhouse providing a key element to the Budget announcement.

We have always maintained that for the Northern Powerhouse to succeed, all parts of the region need to be brought on board.

While the North-East economy will benefit from some of the positive policies introduced last week, many are still looking to see what the Chancellor’s brain-child will do for them and whether a devolution deal can be secured for the Newcastle, Middlesbrough and Sunderland economic region.

The efforts of the business community here must be underpinned by dramatic improvements to the transport infrastructure across the region to ensure our businesses, people and resources are better connected.

Without this, the Northern Powerhouse will not take off.

David Elliott is a partner and head of tax at KPMG in the North-East. KPMG is a global network of professional services, including audit and tax, and a partner of the North East Chamber of Commerce.