Karen Plumbley-Jones, Managing Associate (Practice Development Lawyer) and employment expert at Bond Dickinson
The Chancellor announced a 4 percent increase in the national living wage, taking it to £7.50 per hour from April next year. While this is good news for the one million plus workers who will receive a pay rise, employers will be concerned about how they will fund this.  It will add to their concerns about rising costs – caused by the fall in the value of the pound, the forthcoming rates increases and the introduction of the apprenticeship levy – and the extent to which they can pass them on to consumers.

Mark Tighe, Managing Director of R&D tax relief specialists, RD Tax Solutions
In today’s tech-driven UK economy, R&D is the new rock n’ roll. “The Government is acutely aware that if this country wants to stay competitive globally, R&D is vital, and in this Autumn Statement it has put its money where its mouth is. Rapid technology advances have made R&D something that more and more businesses can enter into and commit budget to. In a growing number of sectors companies need to invest in R&D just to stay in the game.

However, there’s still a wide misconception that R&D tax relief is really only available to giant pharmaceutical companies employing armies of people in white coats. In reality, we are securing tax relief on a daily basis for smaller companies ranging from breweries and vets to manufacturing and construction companies. While the number of firms spending money on R&D is rising, there’s still a long way to go in raising awareness about the lucrative tax reliefs available. Only a tiny percentage of firms investing in R&D are claiming back the available tax reliefs.

Ben Madden, Managing Director of London estate and letting agents Thorgills
The ban on letting agent fees is both myopic and misplaced. It’s also an embarrassing U-turn in Government policy. While letting agent fees need to be transparent and competitive, and usually are, they are a legitimate business cost and an integral part of the lettings process.

Without thorough referencing, credit and inventory checks, landlords are sitting ducks and tenants can also lose out. These fees are about protecting both sides. Scrapping these fees could result in unscrupulous agents delivering less, not more transparency. Instead of being visible and transparent, fees could be hidden and when people renew their tenancies, they could end up paying more again. For tenants, the ban will drive up costs rather than reduce them. As is often the case, the actual people a policy change is designed to help will be the ones who suffer the most.

Quentin Willson, V Motoring Journalist & Broadcaster and Lead Campaigner for FairFuelUK
I’m disappointed that the Chancellor didn’t instantly put money into everyone’s pockets by cutting duty. There’s an immediate benefit to the economy. I’m surprised too given the CEBR has said cutting duty by 3p wouldn’t change net tax receipts. This is a lost opportunity from a government still afraid of supporting drivers and roads’.

Charlie Elphicke MP for Dover and Chair of APPG for Fair Fuel said: “This is a victory for the hard-working classes of modern Britain. “I’m delighted the Chancellor listened to the concerns of drivers and FairFuelUK supporters up and down the land. He is absolutely right to put more money in the pockets of hard-pressed families and small businesses.” Howard Cox, Founder of the FairFuelUK Campaign said: ‘the longest tax freeze in history is down to FairFuelUK and its millions of supporters showing that lower pump prices is good for the economy.’

Louise Boland, Managing Director – Opus Energy
There is no denying that raising the National Living Wage will put added financial pressures on small businesses, not least because they already have the pensions regulations to adhere to by 2017. However, this move should not be seen as merely a goodwill gesture. Ultimately raising the living wage makes good business sense. The extra thirty pence an hour has the potential to reduce staff turnover, close the gender pay gap (with more than three million women set to benefit), boost employee engagement, along with the benefits to the economy via an incremental boost to disposable income. This is clearly a step in the right direction for society and business.”

Bill Thompson, Principal Consultant – Payroll at NGA Human Resources
Following the Chancellor’s changes to employee benefit taxation, the incentive for businesses to offer work perks will plummet. Employers will be hit with the double whammy of a 13.8 percent increase in national insurance obligations on affected benefits whilst still having to incur the cost of negotiating them in the first place.

However, the business cost here is employee engagement. Recognition and reward are vital to staff productivity and providing perks such as mobile phone contracts and gym memberships help enhance it. This is vital at a time when the UK reportedly has the lowest productivity levels in the G7. Engagement is not simply about culture and training, financial rewards and cost saving benefits are just as important for ensuring workers feel appreciated and happy at work.

Tom Castley, VP EMEA, Xactly
“Philip Hammond’s announcement of a national productivity investment fund recognises the fact that productivity levels in the UK still lag behind many European countries. We have a clear productivity gap in the UK – with employees working longer hours for lower output. However, rather than focusing on investment alone, UK businesses should also look to bolster their own productivity by engaging their existing workforce – by fundamentally evolving the way they reward employees. As a country, we must move away from the old-fashioned salary economy to the performance economy. Rather than paying people based on their position and tenure, employees must be rewarded for their output. This isn’t about throwing money at the problem, but instead requires smart, performance-based financial rewards.

“At the same time, Phillip Hammond’s proposal to restrict tax-free benefits for workers could be very disadvantageous for businesses’ productivity. Both financial and non-financial rewards are vital for keeping workers motivated. Ultimately, the Government should be supporting, rather than limiting, businesses in engaging their workers, if we are to improve the UK’s productivity. Restricting tax free incentives is likely to be a false economy.”