In every Budget there will always be winners and losers. The Chancellor generally only gives with one hand if he is able to take away with the other, because at the end of the day it’s all about balancing the books. So who were the big winners in George Osbourne’s ‘latest’ budget? Well, as accountants we’re pleased to say it was small businesses.
How big a win was it for small businesses? Well, the Federation of Small Businesses (FSB) has said it was considerable, claiming the budget contained many sizeable victories for the UK’s small business enterprise community – most notably the changes to Small Business Rates Relief.
FSB members have mounted a concerted campaign over the years to not only make Small Business Rates Relief a permanent fixture, but also to expand it further. So to receive news that the relief would be more than doubled ‘permanently’ must go down as a win that exceeded many people’s expectations.
So what was the view of the Federation of Small Businesses? What did the FSB make of the latest announcements? Well, Mike Cherry, policy director, FSB, has said that the measures announced on business rates – the single biggest tax cut in Wednesday’s Budget – would mark a key step towards fundamental reform. He also felt the Government should be applauded to listening and acting on calls from both businesses and accountants for a simpler tax system for small businesses and the self-employed.
Speaking about the announced changes, he said:
“In a Budget constrained by both the need to reduce the deficit and the economic outlook, the Chancellor has listened to our calls for the tax system to be made simpler for small businesses and the self-employed and taken important action on business rates.”
“In particular, FSB members have campaigned hard to make Small Business Rates Relief permanent, and expand it – and the Chancellor has heeded our calls, taking many small firms out of the system altogether.”
“The combined measures announced on business rates – the single biggest tax cut in the Budget – will be viewed by our members as a welcome and important step on the road to fundamental reform. In addition, online retailers will benefit from steps to secure a level playing field for smaller online businesses on VAT.”
“Freezing fuel duty will be universally welcomed by small businesses right across the country. Furthermore, the new devolution deals, alongside increased investment in roads, rail, and flood defences, should give a much needed boost to the UK’s infrastructure.”
“Altogether, these measures should help to drive productivity and boost small business confidence levels, which have faltered recently in the face of a number of domestic policy and global economic challenges,” he added.
If you would like more information about the 2016 Budget, and would like to find out how the changes could affect your small business, then contact Steven Glicher accountants on 0161 485 8007 or email firstname.lastname@example.org.