Tax expert David Hannah has welcomed the UK chancellor’s plan to release £6.9bn for English city regions to spend on train, tram, bus and cycle projects, reacting to today’s budget announcement. As part of the government’s levelling up fund, the autumn budget announcement included further potential funds for projects such as a high-speed link between Leeds and Manchester, as well as £1.7bn for local councils in deprived areas to spend on local infrastructure improvements.
David, who is principal consultant for Cornerstone Tax, said: “This budget sets up what is becoming a wider trend in migration away from centres to the regions, so it is good to see that infrastructure spending is being put in place to support this. It is also good to see no further significant tax rises announced as the UK economy grows at a faster rate than first thought, as it has long been the thinking of many economists that growth, both economically and in tax takes, comes from lower taxes, not higher.
“The commentary around the property market and the pandemic positions Covid-19 as the only cause for this trend of deurbanisation outlined by property demand and our own data. We don’t think this is quite fair. Many of us have long dreamed of a slower life in the country; the cultural significance of this dream is nothing new. The ubiquitous effects of the pandemic and the various lockdowns it caused has naturally had a significant impact, mainly by making the culture of work less rigid.”
