A REDESIGN of Gatwick Airport train station, more money for flood defences and more funding for Sussex’s air ambulance was announced in yesterday’s Autumn Statement.

Homebuyers could also save thousands of pounds after an overhaul of the current tax system came into force at midnight.

Chancellor George Osborne announced the reform of stamp duty, pledging to save money for 98% of homebuyers as part of the statement, which experts have branded a victory for taxpayers.

The levy will mean those buying the top 2% of the most expensive houses will have to pay more, relieving pressure for first-time buyers wanting to fulfil their dream of owning a home.

On average it will amount to £4,500 less tax on a £275,000 home.

No duty will be charged on the first £125,000, there will be a 2% on the portion up to £250,000, 5% up to £925,000, 10% up to £1.5 million and 12% for higher prices.

Only homes that cost more than £937,000 will see bills rise.

Michael Bruce, chief executive of online 24-hour estate agent Purplebricks.com which deals with Brighton properties, said the previous system was “flawed” and “outdated” and led to people paying “excessive” levels of tax.

He believes the change will have “huge benefits” for people buying and selling property in the city.

Business figures, traders and Brighton MPs Caroline Lucas and Simon Kirby welcomed plans to increase the Small Business Rates Relief.

Simon Kirby, Brighton Kemptown MP, said he was pleased £900 million will be spent in investing in new businesses.

He said: “This will undoubtedly help create more businesses in the city, as well as helping those already established to prosper.”

Ms Lucas, the MP for Brighton Pavilion, has campaigned for the rate relief to be broadened – tabling an early day motion in parliament in 2012 on the issue. She has recently been appointed a Federation of Small Businesses Parliamentary Champion.

She said: The vast majority of businesses in Brighton and Hove are small or micro-level, and they’re the backbone of our local economy. As well as forming part of community life, they provide valuable services and jobs. The business owners I meet in my constituency tell me they’re struggling with business rates.

“The Government has dragged its feet on this for years– and a review is welcome. But Brighton’s businesses need action, now.”

Julia Chanteray, president of Brighton and Hove Chamber of Commerce, said small businesses were the “life blood” of the city and called the system “old-fashioned”.

She said: “Brighton and Hove has a very high proportion of small businesses compared to other cities. If we had to pay the same rates as big companies it would be a real barrier to growth. We also think that waiting until 2016 to review the ridiculously old fashioned rates system is far too long, businesses need to know where we stand now so we can plan for the future."

Clair Letton, co-founder of Wigwam Toys, in Preston Drove, Brighton, said:

“Small, independent businesses are hugely important to Brighton, and this is a great, dynamic place to build a business – but it’s also really tough for many – especially when you’re just starting out – as rents here are so high. We need the Government to recognise the value of small businesses like ours and we need policies to reflect that value and make things easier for people to get their ideas off the ground and for their business to survive – and hopefully thrive.”

Fiona Lowden, who runs TaxAssist Accountants Horsham and Burgess Hill, said: “Increasing the £1,000 discount on rates for pubs, restaurants and small shops with a rateable value of £50,000 or below, to £1,500 next year is good news and will help to encourage new businesses back to the high street.

 “The £500 million lending pledge for small to medium sized businesses through the Enterprise Finance Guarantee Scheme, plus a £400 million extension to the British business bank Enterprise Capital Funds scheme, as well as extending the Funding for Lending scheme to boost bank lending to small to medium sized businesses, is welcome news for local business owners seeking vital finance for growth, but we will watch closely to see how this is actually delivered. 

“Many local small businesses will also benefit from the abolition of employer National Insurance contributions for apprentices aged under 25, which will boost recruitment and training opportunities for young people, whilst the continued freeze on fuel duty is a clear benefit to business owners whose service is dependent on home deliveries.”

Gatwick Airport station benefitted from a multi-million pound redesign, there was investment in flooding defences, funding for the Kent, Surrey and Sussex Air Ambulance Trust, and previously announced transport investments were mentioned in the speech.

An extra £2 billion a year will be pumped into the NHS, £1.2 billion invested in GP practices, and reductions for those employing carers.

But Mr Osborne also warned more public sector cuts would have to be made. He said businesses would be encouraged to export more trade, and aid workers helping in the Ebola crisis would have inheritance tax exemptions. There would be a crackdown on tax avoidance and fuel tax will be frozen. National Insurance costs for young apprentices will be stopped and air passenger duty will be abolished for children under the age of 12. 

Janet Morrison, the chief executive of advice charity for the elderly Independent Age, welcomed help outlined in the statement for carers but said there needed to be greater investment in social care. 

Robin Edwards, South East Country Land and Business Association director, said he was “disappointed” Mr Osborne had failed to offer empty property tax relief which was “essential for owners to afford investments needed to bring properties back into use.”

• Gatwick Aiport train station

GATWICK Airport train station will be given a £120.5 million re-design.

Work will begin in 2017 and continue until 2020, doubling the size of the concourse to reduce congestion, introducing more escalators and lifts, and offering more passenger information.

Both the airport and Network Rail will contribute £30 million towards the deal, which is still subject to more negotiations, ahead of predictions usage of the station will increase from 5 million to 20 million rail passengers a year by 2025.

Guy Stephenson, Gatwick’s chief commercial officer, said: “The new station builds on the ongoing transformation of the airport and will deliver a first-class gateway for visitors, air passengers and the one million rail commuters who use the station every year.”

 

• Air ambulance funds

The Kent, Surrey and Sussex Air Ambulance Trust was allocated £1.5 million.

The trust said the seven-figure sum will go towards the charity’s capital investment programmes for helicopter and base needs.

The announcement saw a VAT relief for all emergency service charities which will free up funds and lift some of the administrative burdens linked to the tax break.

The All Party Parliamentary Group for Air Ambulances (APPGAA) said this would potentially save the lives of 800 more patients a year.

Chief executive Adrian Bell said: “This will release about £100,000 per year directly to frontline services and will equate to more than 30 life-saving missions of the 1,800 that the charity undertakes annually.”

 

• Flood defence systems

THE Government has pledged more than £16.5 million for a tidal flooding defence scheme which will protect more than 2,000 Sussex homes.

Work on the Shoreham Adur Tidal Wall is expected to start in early 2016. Developers will seek full planning permission next summer.

The project is one of a number across the south east to receive £300 million.

Among the other schemes set for Government funding include the Littlehampton Arun East Bank Flood Risk management scheme.

Although work has already begun, the additional funding should see the project completed next year.

The Pevensey Bay Sea Defences, ongoing, Seaford Beach Shingle project, starting 2016, and Shoreham Western Harbour Arm project, will also receive financial help.