Yesterday’s Autumn Budget may have lacked any meaningful announcements where the UK property market is concerned, but it certainly delivered in giving the nation’s small business owners a boost in what has been a rough ride over the last year or so.
The Chancellor announced funds for a further 10,000 start-up loans to encourage grassroots British business, as well as assistance for apprentice funding to encourage said businesses to offer chances to young workers. There was also preservation for entrepreneurs tax relief as well as money pledged to the air ambulance service, more funding for the NHS, £10m to support veterans with mental health issues and a one-off £400m payment to schools to purchase equipment.
But Philip Hammond’s big headlines of the day were a one-third discount on business rates for small enterprises with a rateable value below £51,000. While this will have little impact on our larger retailers, such as Debenhams - the latest in a long line to announce a number of store closures - it will at least aid the independent outlets on high streets across the nation.
This was bolstered with an ‘Amazon Tax’ - or UK Digital Services Tax - which will come into force in 2020 and should raise over £400m by ensuring the big online players like Facebook and Amazon pay their fair share to the UK economy for the value we bring.
While this cut in rates will provide a bit of breathing room at one end by reducing the operating costs of Britain’s small businesses, it’s still important that they adapt to the changing face of business in order to remain profitable at the other.
Our Business Growth Expert and CEO, Andy Soloman, was on hand to provide his reaction to yesterday’s developments.
“This budget levels the playing field between the tech giants and the little guy, and I for one raise a glass to Mr Hammond for listening to the UK’s small businesses and delivering this big boost when they needed it most.
It will no doubt come as a kick below the belt for Bezos and Zuckerberg who have had it too good for too long at the expense of the smaller British retailer, who have been relying on seasonal boosts in sales just to keep their heads above water.
Technology plays such a huge part in our day-to-day lives, but it’s important that as it becomes more prevalent we don’t allow it to do so at the expense of British business.”
