Glasgow-based businesses gave a mixed reaction to the tax cuts in Kwasi Kwarteng’s mini-budget.
The chancellor said it will drive economic growth with tax cuts.
Some welcomed the cuts in National Insurance while others said cutting tax will not help business growth.
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Euan Cameron, founder of Willo, a Glasgow-based video interview start-up, said: “I think this is just about the worst budget announcement I have heard.
“For new businesses and organisations that are looking to grow, this mini-budget was a real disappointment.
“UK growth and productivity has been stagnant since 2011 and cutting taxes will not fix that but investment in businesses, training and apprenticeships will.”
Fergus McCoss, co-founder of Glasgow-based Hinba Coffee Roasters, said: “The decision to scrap the planned rise in corporation tax and reverse the increase to National Insurance is great news for our staff and the business.
“I hope the Scottish Government follows suit with the reduction of personal income tax and stamp duty, which would help our employees get on the property ladder and settle during these difficult times.”
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Duncan di Biase, founder and CEO of Brillband, a Glasgow-based internet service provider due to launch later this year, said: “Talk is cheap, and broadband needs to be cheaper across the board. We need swift, fast action from the Government to ensure households can stay connected without having to pay huge bills.”
Andrew McRae, Scotland Policy Chair for the Federation of Small Businesses (FSB), said: “Scrapping the [National Insurance] hike will save businesses money every month at a time when purse strings are already tight and will remove a barrier to creating new jobs.
“Other common sense measures will help small businesses too - by keeping corporation tax rates at their current level more companies will have breathing space in the midst of this cost of doing business crisis."
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