Of course, the companies quoted on the FTSE 100 are the giants of the business world but, like oak trees, they all grew from relatively small acorns. So how can UK plc help its tiny seeds to flourish and grow into sustainable and profitable enterprises?
One measure announced in the budget was the setting up of 21 Enterprise Zones, rather than the ten, which had been expected. These Zones will offer simplified planning rules, superfast broadband and tax breaks for businesses.
Business Secretary, Vince Cable said “‘We will work closely with local enterprise partnerships to identify new ways we can support them on developing the Zones, especially on issues like enhanced capital allowances and securing inward investment.”
So far, eleven Zones have been announced across England and a further ten will be unveiled in July after a competition to locate suitable sites. The British Chamber of Commerce has got behind the Zones and its Director General, David Frost, said “The role of Local Enterprise Partnerships in designating and running Enterprise Zones will ensure that local business leaders are at the heart of the new policy. Beyond upfront incentives, the reinvestment of business rates locally is critical to boosting regional growth.”
And, if the regions perform, then the country performs, as long as the Zones don’t create a movement of jobs rather than a creation of them. As long as the Government is committed to the growth of small business and brings in measures to help it – and, more importantly, keeps regulation to a minimum – then there is every chance that we will be seeing more acorns and, eventually, more oak trees on this green and pleasant land.
For more information, please visit www.glazers.co.uk
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( 2.9 / 247 )Following yesterday’s budget, the Chancellor now asserts that Britain is "open for business". One of the Government’s aims for the budget had been to help SMEs and encourage their continued contribution to the economic growth of UK plc, whilst supporting job creation and generating industry innovation. And there were some announcements, which could help in achieving that goal.
For instance, corporation tax will be cut by 2% from April, in an attempt to woo business back to the UK, and will continue to fall 1% in each of the following three years, taking it down to 23%, which is the lowest in the G7. In order for banks not to benefit from the cut, the bank levy rate will rise to offset the effects of the corporation tax cuts.
Instead of the previously planned ten, there will be 21 new enterprise zones created across the UK. These will bring tax breaks, reduced planning restrictions and ‘superfast’ broadband. The enterprise zones will also offer a business discount rate worth up to £275,000 over five years for firms that move into the area over the course of this parliament.
Plans are also afoot to merge income tax and National Insurance, which will be a huge boon to employers. This isn’t concrete yet but is definitely on the Chancellor’s radar and will add to the “bonfire of red tape” promised to business by the Government.
The small business rate relief holiday will be extended until October 2012, which certainly contributes to the bottom line and the small business tax rate will be reduced by the expected 1%.
As far as the future workforce is concerned, it was announced that the number of placements for young people on work experience schemes will increase fivefold to 100,000 places over the next two years with funding in place for an additional 40,000 apprenticeship placements for unemployed young people.
So, within the small margin available to him, Mr Osborne appears to be doing his best to help. It will be an interesting year.
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( 3 / 172 )This budget promises to be one of the most important for small businesses in a generation, as the Government has announced the most business-friendly and pro-enterprise measures we have seen in a long time. Indeed, at the Conservative Party Conference, the Prime Minister said that “the only strategy” for growth was to get behind small businesses. But we’ve heard it all before, haven’t we?
Small business owners, like everyone else in the country, want to see UK plc back on its feet but they know that they’re in for a tough, long haul. Set against a national backdrop of spending cuts, inflation set to rise and slower growth than predicted, most of them are tired of the rhetoric and want to see some concrete measures to help them flourish.
The majority of small business owners want a reduction in regulations, which they feel stifle their growth. They also want access to more lending and they would like to see more funds to finance the training of young people. And, of course, they want a decrease in taxation.
Well, maybe they will get some of their wishes coming true as, according to the leaks, the Chancellor will today present a ‘growth review’, which aims to deliver the sort of changes to business regulation and taxation, which will spur expansion in the private sector.
However, business experts are somewhat sceptical about the delivery of real policies to help small business owners lead the country’s growth. On the one hand the Government talks about beneficial changes in taxation and on the other, National Insurance Contributions are set to increase. And if business growth is top of the agenda, then why will we be faced with a massive bill to implement new employment legislation?
Let’s hope that the measures outlined later today really will offer more answers, fewer promises and a little more consistent action.
For more information, please visit www.glazers.co.uk
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( 2.9 / 187 )The UK continues to struggle out of the deepest recession since the 1930s. With inflation and VAT rises being felt, has the recovery been more painful than the recession? A new report suggests so, after claiming that UK households are facing their biggest drop in living standards for 30 years.
People’s earnings are not keeping up with the rise of inflation, leaving the UK to feel the pinch. With earnings becoming more stagnated, the report by the Institute for Fiscal Studies (IFS) said that households are more likely to be 6 percent worse off than they would have been if the recession had not stopped incomes from rising.
The report believes that the average household income will have fallen by 1.6 percent over the past three years. The IFS measured the household income, ahead of tomorrow’s budget, by looking at what was coming in after inflation was taken into account.
The fall in living standards is also believed to be caused by people receiving less interest from their savings, lower employment levels and tax and benefit changes, the report said.
IFS said the drop in living standards is the most dramatic fall since the 1980s and marks the first drop in the average household’s income over any three year period since the early 1990s.
At a time when the UK is struggling to recover, it means workers feel they are in no position to demand pay rises. The weak job market will also deter workers from making financial demands. Until inflation and interest levels are back to their target levels, the UK will continue to feel an even harder pinch.
For more information, please visit www.glazers.co.uk
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( 2.9 / 188 )This weeks budget is being promoted as a “budget for growth” by George Osborne, declaring that he had already “asked what is required” of the British public to ensure economic growth in last year’s budget.
The chancellor has promised that there will be no further tax increases or spending cuts and his focus will now be on the UK’s economic recovery.
Although the sharp rise in VAT at the beginning of the year will continue to be felt and an increase in National Insurance will still happen next month, however, the overall budget will not raise any extra money.
So the public don’t need to worry about anymore tax increases or cuts, but what about the current rate of unemployment? What will George Osbourne do to create jobs?
The chancellor stated in an interview that there will be a rise in apprenticeships and work experience schemes. He has obviously taken on board last week’s eye-opening unemployment statistics from the Office for National Statistics, which revealed unemployment in the UK was at its highest since 1994 - being particularly bad in 16 – 24-year-olds.
The increase to the price of fuel is set to continue to be a burden for businesses. The Chancellor said he was “looking very carefully at that” to see if he can afford to do something about the surging prices.
It is a comfort to hear that the UK should not have to brace itself for anymore cuts or increases in tax. However, the cuts and increases that have already been implemented will continue to be felt. Economic growth should be the main focus on Wednesday and it is vital the Chancellor puts in place strong actions, and not just words, to get the UK on the road to recovery.
For more information, please visit www.glazers.co.uk
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