The Chancellor announced a number of measures to boost small businesses, in addition to creating the National Loan Guarantee Scheme. However, the British Chambers of Commerce believe that the measures introduced aren’t sufficient to ease fears of the Eurozone collapsing and the UK economy.
Global demand and uncertainty of the UK economy are going to remain the most challenging aspects of business for a number of companies. A number of initiatives have been introduced to help small businesses, but the wider economy still needs to be addressed. Many of the initiatives had been spoken of in the days leading up to the Chancellor’s Autumn Statement. Employment legislation changes are proposed to help small businesses deal with their workforce without fear of facing a tribunal. This is expected to make it easier for smaller companies to hire staff.
UK Trade and Investment will provide support services for up to 500 medium sized companies with a £10 million investment, while £35 million will double the number of small businesses receiving help, taking the number to 50,000. Business rates have also been addressed, with a six month extension of the business rate holiday from October 2012. Deferment of 60 percent of the increase will be permitted on their 2012-13 bills. The planned fuel increase for January 2012 has been abolished, with a lower increase expected in August 2012.
The chief executive of the Forum for Private Business, Phil Orford said:
“We have seen some tentative steps towards easing fuel duty and business rates, but we need to go much further and introduce real tax reforms in order to help them to grow and create jobs.”
Want to learn more?
Subscribe to our newsletter to get accounting tips like this right to your inbox