This Wednesday, Chancellor George Osborne delivered his sixth budget report, just 50 days before the election. The report made several announcements that impact small businesses. He called Great Britain the “comeback country”, highlighting a reduction in the deficit, an increase in the employment rate and bettered living standards.
Along the top takeaways, which are listed below, Osborne emphasised the need to support UK enterprise. Small businesses can welcome a 100 percent increase in support for British exports to China. There is also a plan to create a “northern powerhouse,” with Greater Manchester provisionally being granted the ability to “keep 100% of the additional growth in local business rates.” Similarly, a further £11 million is being invested to facilitate the creation of entrepreneur tech hubs in Manchester, Leeds, and Sheffield.
Broadband was another hot topic. The government planning to invest £600 million in superfast broadband to improve mobile data coverage and capacity, as well as the allocation of superfast broadband vouchers which will greatly help small businesses in urban areas. Furthermore, many small and medium business owners were excited about the announcement that annual tax returns would be abolished by 2020.
Speaking generally of the budget report, the Chairman of the Federation of Small Businesses John Allan said: “The review is long overdue. It must deliver tangible benefits to businesses and not end up as just another report that sits on the shelf.” Here’s hoping for continued change to help small businesses! Our key takeaways for small businesses are:
- The UK economy grew by 2.6% last year, more than any other major advanced economy in the world.
- The North is growing faster than the South, indicating that the economic recovery is national not just in London.
- Britain’s employment rate has improved 1.9% and 1,000 new jobs are created every day across the UK.
- The minimum wage will be raised to £6.70 this autumn.
- ‘Google’ tax will start next month, preventing businesses from moving their profit abroad.
- £60 million will be invested in industry in the Midlands.
- Corporate tax is to be reduced to 20%.
- Young persons under 21 will no longer be required to pay National Insurance payments in hopes of getting more young people into work.
- The Class 2 tax contributions for self-employed people will be abolished next year, which will help 5 million self-employed businesses individuals.
- A personal savings allowance will be introduced so that people can save up to £1000 without being taxed.
- The personal tax-free allowance will be raised to £10,800 next year.
Interested in reading more? Click here to visit GOV.UK’s 2015 Budget page now.