It was maybe on purpose that Chancellor Rishi Sunak gave his Spring statement exactly two years to the day that the first UK wide lockdowns were announced to combat the pandemic and looking back it still seems amazing that so many people and businesses are still operating today.
The speech began with figures from the Office of Budget Responsibility (OBR) which weren’t encouraging. They reported that the inflation rate of 6.2% is at its highest level for over 30 years. They also expect it to rise even higher in the rest of the year with prices, especially energy, set to rise sharply from October.
There weren’t as many big or headline grabbing announcements as in previous budgets or statements but there were several announcements that could have an impact on small businesses in the coming weeks and months.
Business investment tax
In the next budget in Autumn, taxes on business investment will be reduced including increasing the annual investment allowance and expanding writing down allowances.
R&D tax credits
Increasing qualifying expenses including definitions and cloud computing costs
Will be reviewed along with private sector employment training to see what additional help can be given to companies who take on apprentices and younger employees with the aim of training them up
Employment allowance increase
This national insurance relief will rise by £1,000
Business rates discounts extended
50% up to a total of £110,000 for businesses in the leisure, hospitality and retail sectors. Some areas of the economy feel like they have a better deal than others with manufacturers in particular feeling hard done by.
Shevaun Havilant, Director General of the British Chambers of Commerce, said: “The Spring statement falls short of the action businesses needed to see. While there are some positive announcements that firms will welcome, it did not fundamentally address the huge cost pressures they are facing.”
If a company is looking for additional help that wasn’t forthcoming in the Spring statement one of the best things they can do is get some free advice from impartial professionals.
An initial consultation lets us fully understand the situation facing a company and illuminates areas where positive interventions could take place. Whatever the situation, it can be improved by getting in touch and finding out how else we can help.
- Peter has been reporting about business trends and insights for several years and provides the best biz digs to keep business owners and workers informed and educated.