What Cornwall businesses want from the Budget, according to Azets

A holiday in Cornwall priced to compete with a city break in Copenhagen. That is one of the ideas on a four-point Budget wish list from accountancy firm Azets, which says firms here have the will to grow but are being held back by high costs and a tough trading climate.

The firm has called its list the “Fab Four”. It comes from Praveen Gupta, UK head of tax at Azets, a UK top 10 accountancy and business advisory firm with offices across the South West, including in Truro. The asks are aimed at the Chancellor, and Azets says they would make life easier for Cornwall’s businesses as well as firms across the country.

The four asks

• Cut VAT from 20% to 10% for hospitality firms
• Lower Corporation Tax from 25% to 17%
• Bring in a “one-in, two-out” rule for red tape
• Publish a clear two-year roadmap for employment tax

“A golden opportunity”

Praveen said: “The Chancellor has said that he wants to back British businesses, and this Budget is a golden opportunity for him to do that.

“He needs to set out a clear plan for cutting costs, slashing red tape and giving local businesses the foundation they need to go for growth and power the economy.”

He added: “The Budget should be judged on the wider ease of doing business.

“Cornwall has the entrepreneurship, creativity and resilience to build successful businesses. That’s evident. The government should examine what it can do to make it easier for companies to start, grow and invest in the country.”

According to Praveen, the list is based on feedback from many of the tens of thousands of businesses Azets works for, locally, regionally and nationally.

“They are looking to government for support from this Budget, and we hope that our policy asks are a resounding clarion call to Westminster at a time when many firms have the will and the skill to grow but are being held back by high costs and a tough trading climate,” he said.

Why hospitality VAT tops the list

Azets says the UK has one of the highest VAT rates for hospitality in Europe. The firm points out that nearly every major European tourism market charges a lower rate on accommodation and hospitality, treating tourism as an export industry. The UK charges the full 20%, which Azets says is almost double the rate in many competing countries.

The result, in the firm’s view, is lost business from both overseas and domestic visitors who opt for cheaper alternatives.

Dropping the rate to 10% would put the UK level with many European counterparts, Azets argues. It also says the cut would ease shrinking margins for firms squeezed by rising employment and operating costs on one side and cautious consumer spending on the other, and help them keep and recruit staff.

Corporation Tax down to 17%

The second ask is a cut in Corporation Tax from 25% to 17%. Azets estimates this would free up around £20bn for firms to invest, and potentially £80,000 each for firms making a profit of £1m.

The firm accepts the Treasury would take less at first. But it says the change would encourage businesses to expand, invest in equipment and technology, improve cashflow and create jobs, bringing in more through other taxes. It also believes a lower rate would attract non-UK businesses to set up here.

Two years’ notice on employment tax

Azets wants the government to publish a rolling employment tax roadmap looking two tax years ahead.

The firm says the last two Budgets gave businesses little time to prepare. It singles out the National Insurance Contributions and National Minimum Wage changes announced in Autumn 2024, which it says gave employers just four months to plan before the new tax year.

A roadmap, Azets says, would let business owners budget more accurately and bring more stability to growth, tax revenues and recruitment.

One in, two out for red tape

The final ask is about regulation. Azets says the combined weight of tax, employment law and health and safety rules is making it harder for small and medium-sized businesses to grow, with owner-managers spending time on admin that could go into recruitment and investment.

Under its proposed rule, any new regulation adding to the admin load on SMEs would be offset by scrapping two existing requirements. The firm says this would go a long way towards the government’s aim of cutting that burden by a quarter.

Latest annual business activity figures from the Office for National Statistics show that, as of March 2026, there were 2.79 million VAT and/or PAYE businesses in the UK. Some 238,000 of them (8.5%) were in the South West.