Smes Express Fears Of Being “Left Behind” In Wake Of Chancellor’s “Mini Budget” - TS Partners
by Liz Seyi Digital marketing managerEscalating costs continue to be a matter pressing
on the minds of individuals and businesses alike. However, while the former has
now received some much-needed help with their energy bills from Chancellor of
the Exchequer Rishi Sunak, many representatives of small-to-medium-sized
enterprises (SMEs) have asked when targeted support will be coming to aid their
own survival.
Policies needed to “cut costs,
minimise red tape and accelerate growth”
Amid the sustained cost-of-living crisis, those
keeping even the most casual eye on the recent headlines will probably be aware
of the Chancellor’s announcement of help that could see some of the UK’s most
vulnerable households receive £1,500 over the course of the year. That will
include a £400 grant in the autumn for most of the country’s population.
However, the absence of support targeted at small
businesses made for quite the contrast; there was no news of any grants to
encourage investment, for example or any increase to the employment
allowance.
So, while UKHospitality CEO Kate Nicholls welcomed
confirmation of the £15 billion package as a “signal that the government is
targeting inflation,” she added that “now we need a commensurate focus to
reduce the costs of doing business and further price rises.
“The government needs to identify and accelerate
policies that will cut costs, minimise red tape and accelerate growth.”
One possible move suggested by Nicholls – but also
pushed by other observers in the UK industry – has been a further reduction in
business taxes to incentivise high-street investment.
The fears of consumers are not
divorced from those of businesses
Meanwhile, the managing director of an insolvency specialist
and business consultancy quoted by Startups.co.uk, Rick Smith, pointed
out that “in total, SMEs contribute more than £2.3 trillion to the economy in
general, and despite this, they are being truly left behind.”
Smith also highlighted the interconnection between
consumer costs concerns and business costs concerns, commenting: “Small
businesses are also feeling the effects of rising prices, just in different
ways. Ultimately, prices will be passed onto consumers.”
Also expressing his deep worry about the situation
was Richard Osborne, the founder and CEO of UK Business Forums. As a
representative of one of the UK’s most active small business communities, he is
better placed than most to know exactly what conditions small firms across the
country are dealing with, and his prognosis for the UK economy was not
optimistic.
He commented: “The cost-of-living crisis is a
desperate situation for both businesses and huge swathes of our society, yet
the government announcement seemed to ignore the reality and severity of what
thousands of small business owners are going through every single day.”
Osborne urged the Government to cancel the recently
implemented increase in National Insurance contributions (NICs) but admitted
that even this move wouldn’t “make a huge dent”. And he said that while some
help would be provided by the drop in the basic income tax rate, “that’s not
for another two years.”
Osborne concluded: “Businesses need help now, and
without it, there’s no question that thousands will fold long before this comes
into force.”
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There is no doubt that current conditions remain
challenging for UK businesses. With many sectors having only recently begun to
gain some momentum in their recoveries after lifting previous coronavirus
restrictions, the mere survival – never mind growth – of great numbers of SMEs
is in question.
Because of this, it could scarcely be more
important to consider how your own business could benefit from expert accounting services in Plymouth, Wellington or Newton Abbot, of the kind that
specialists like TS Partners can provide.
For a more in-depth conversation with our experts
about the tax, accounting and support solutions we could provide to assist your
business at this testing time, please do not wait any longer to get in touch with us via phone or email.
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Created on Sep 14th 2022 00:51. Viewed 169 times.