Budget Misses The Mark On Help With Small Business Costs & Jobs

Responding to today’s Budget announcements, Tina McKenzie, National Chair of the Federation of Small Businesses (FSB), said: “This Budget should have been the moment to help small businesses with the soaring costs holding them back, and the taxes restricting job creation. Instead, they got nothing to ease sky-high energy bills and nothing to make hiring someone more affordable, while the increase in business rates relief excludes too many."

“The Government has an ambition for growth in every postcode. Today’s Budget missed the mark on matching that ambition."

“Our latest research shows nearly half of small businesses (47%) expect their revenues to shrink in the coming months, while only around a fifth (22%) expect revenue growth. They are three times more likely to be planning to reduce headcount than increase it (18% versus 6%). There was nothing today anywhere near big enough to change that gloomy outlook.

“The increase in Small Business Rate Relief for small firms in retail, hospitality and leisure is welcome for those who will be lifted out of rates. FSB has campaigned hard for the threshold to be lifted for the first time since 2016, but it should have been applied much more widely. Small businesses blighted by the rates system aren’t just on the high street. Where was the help for the likes of manufacturers, small exporters, nurseries, office-based businesses and – in turn – the people they employ?"

“Of the smaller measures announced, we’re pleased the Chancellor has acted upon our call to increase the Trading Allowance from £1,000 to £3,000. This will incentivise potential small business owners of the future to take the first steps to exploring a business idea, alongside the new Young Entrepreneurs Allowance. Parental pay rights for self-employed dads and partners is also a good step."

“We’ve been very pleased to see the Government adopt 14 out of the 15 recommendations from the Small Business Regulation Taskforce, which was co-chaired by FSB, including a reversal of the Companies House plan to make even the smallest businesses submit profit and loss declarations."

“The Chancellor acknowledged the risks and hard work involved in setting up and running a business, and building it across many years. It is incredibly unclear what difference his plans for founders’ relief compared to entrepreneurs’ relief, officially called Business Asset Disposal Relief, will make."

"The Chancellor must urgently clarify whether he intends to tax or back those who spend a lifetime running and growing successful businesses.”