Nothing in the King’s Speech to encourage business entrepreneurs
There was nothing in the King’s Speech to encourage entrepreneurs to start new businesses or indeed expand existing businesses, say leading, audit, tax, and business advisory firm, Blick Rothenberg.
Simon Rothenberg, a partner at the firm, said: “Entrepreneurs are worried what the impact of the new government will be, both on their existing businesses and any longer-term plans which they might have. There was nothing in the King’s Speech to encourage them to put their money up to start a new business (or to expand an existing business) with confidence they will have the government’s support to grow it.”
He added: “The lack of any comment on business taxation (both in the manifesto and the King’s Speech) should mean that we do not see big changes to corporation tax, capital gains tax and VAT – however for any certainty in this respect business leaders will have to wait for the Budget.”
Simon said: “The position is compounded by the fact that some of the other changes announced by the government are – at least potentially – going to create significant additional difficulties to British businesses. For example, the proposed changes to the Apprentice Levy, might disadvantage some businesses who presently receive government support for the training & development of their staff.”
He added: “Similarly, the proposals that the Labour Party had in its election manifesto – and which have now been included in the King’s Speech – to provide workers with enhanced employment protections, will be welcome by the trade unions but might well create real challenges for some British businesses from an overall cost and or staff flexibility perspective.
“Indeed, the idea that all adults, including 18-19 years olds with no prior work experience, for example, might be entitled to the National Living Wage in future could actually act as a disincentive to those businesses looking to train up younger staff, as their costs for recruiting younger staff will typically be significantly higher than is presently the case.”
Simon said: “Trainees often require significant additional support from the employer, to ‘get them up to speed’, which the existing system of differential wage rates for younger staff compared to their older colleagues was – in broad terms – designed to recognize.”
