Voice of SMEs says Autumn Statement brings hope for small businesses
The UK200Group of independent accountancy and law firms, a voice that reflects the views of their 150,000+ SME clients, has declared the Autumn Statement as a successful one for UK SMEs.
There were a number of new measures announced by chancellor George Osborne, the first being a way that will transform how SMEs access finance. The government plans for Experian, Equifax and CreditSafe to each receive SME credit information from designated banks and provide access to this information to finance providers. It is planned that this will promote competition in the SME credit market.
Furthermore, from April 2016, the brand new Employment Allowance will rise to £3,000, which is set to benefit over one million employers and help many businesses take on their first employee.
For SMEs looking to take on an apprentice, George Osborne announced that small businesses will continue to receive support. First mentioned in the 2015 Summer Budget, the apprenticeship levy – which will be introduced in April 2017 – aims to raise £3bn a year and will be set at 0.5% of the payroll bill. However, as the chancellor announced that there will be a £15,000 allowance, only around 2% of UK employers – none of which will be SMESs – will have to pay for it. This will redress the shortfall of skills in the British economy – which the chancellor said is, “one of the enduring weakness of the British economy” – and create three million apprenticeship positions by 2020.
The Spending Review and Autumn Statement also brought news that the Small Business Rate Relief (SBRR) in England will be extended until April 2017. Around 405,000 of the smallest businesses will continue to receive 100% relief from business rates, with a further 200,000 benefiting from tapering relief.
Declan Swan, chief executive officer of UK200Group, said: “Today’s Autumn Statement has shown that the government sees the importance of SMEs for this country’s economy. By promoting competition for SME credit and encouraging more apprentices to start work, as well as extending the Small Business Rate Relief, the chancellor has shown that he is committed to supporting the UK’s SMEs.”