Constant tax changes won’t inspire business to invest in Britain

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The timing of last week’s budget was handy for Andrew Watson. The finance chief of Goodfellow Cambridge is in the market for a new computer software system to help the supplier of specialist metals — and its 130 staff — manage processes such as its accounting and supply chain.

The project will cost Goodfellow Cambridge more than £1 million. Jeremy Hunt’s announcement of new capital allowances will mean he will make a hefty saving on his tax bill when he makes the investment.

The government’s hope is that the tax break will encourage companies to bring forward investments in IT systems, machinery and other equipment to boost the level of business investment. Hunt’s full expensing capital allowances giveaway was his way of countering a rise

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