Small business left out in the cold in Autumn Statement

Local business owners were left out in the cold in by the Chancellor in his Autumn Statement today.

Jo Nockels (FCCA) of TaxAssist Accountants said: "Small business was left completely out in the cold in the Chancellor's statement. Hard working small business owners were given absolutely no recognition of the major contribution they make to the UK economy. 

"Small businesses are already facing huge challenges from compulsory contributions to staff pension pots, the National Living Wage, changes to the way dividends are taxed and onerous business rates and there was no respite from the Chancellor. In fact the further increase in the National Living Wage announced today - from £7.20 to £7.50 an hour from April - could deter recruitment decisions and slow down growth.

"The £2.3 billion housing infrastructure fund and further £1.4 billion for affordable homes is a welcome contribution to local economies, with many small businesses such as plumbers, electricians and decorators as well as those in construction reaping benefits. 

"Cancelling the planned rise in fuel duty will help some local business owners. For many, particularly those which deliver products and services to our homes, cars and vans are essential not a luxury.

“But we would have liked to see more concrete measures to encourage small business growth, such as an increase in Employment Allowance, or the return of the Small Companies’ rate for corporation tax.

"The Chancellor said that next year's Spring Budget will be the last - replaced by an annual Autumn Budget. He must use the opportunity to give some well-deserved reward to the over five million small businesses in the U.K who contribute a massive £1.8 trillion to our economy and create some 15.6 million jobs. Small businesses are the backbone of local economies - supporting them will be essential to meeting the Government's objectives."

Date published 23 Nov 2016

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