BUSINESS organisations across York have been outlining their hopes for today’s Budget announcement – calling for a number of measures to boost the city’s economy.

Chancellor George Osborne will today open his red briefcase and deliver the 2015 Budget, the last of the current Government ahead of the General Election in May.

The message from businesses ahead of the budget sees calls for simpler tax measures, and an end to “constant chopping and changing” of the tax system.

In particular, the North Yorkshire Chamber of Commerce is seeking the introduction of a permanent Annual Investment Allowance of £500,000.

Echoing the British Chamber of Commerce’s calls, the North Yorkshire Chamber says the incentive will encourage business to invest and boost productivity by allowing them to deduct plant and machinery assets to the value of £500,000 from profits, and lower tax bills.

The chamber believes the Investment Allowance figure, due to fall to £25,000 in 2016, should be fixed at £500,000, and also be extended from covering just plant and machinery assets to including improvements to business premises.

Andrew Lindsay, chairman of West & North Yorkshire Chamber, said: “Businesses have grown tired of constant chopping and changing in the tax system. They need long-term certainty, rather than short-term incentives, to help support investment decisions.

“A long-term investment allowance would give much-needed certainty. Premise improvements could also be included in the scheme as firms look to expand their workforce or enhance their efficiency.” Also seeking tax simplification measures is the Federation of Small Businesses (FSB), which believes the administrative costs in meeting tax obligations for small businesses are unnecessarily high.

Simon Williams, who is the FSB’s North Yorkshire regional chairman, said: “We would like the Chancellor to focus on delivering further supply-side reforms, building on initiatives already under way.

“The latest FSB Index report found the balance of businesses increasing their head-counts has risen by two per cent this quarter compared to the same period last year.

“Many businesses are also finally able to reward staff with improved pay packets, which the results suggest have been supported by rising productivity growth.

“To maintain this positive trend and support business confidence, the Chancellor should concentrate on building on existing initiatives rather than invent new ones.

“The FSB has also called for sustained commitment to rebalancing the UK economy with improved broadband delivery.”