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SFS News

SFS NewsAs part of our commitment to keep our Clients updated about legislation, sectoral news, service provision, ... we have included this area on a website.

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The Autumn Budget 2014

How does the Autumn Budget affect businesses.

autumn budget 2014In the pursuit of economic stability, Chancellor George Osborne has detailed the spending and saving plans that together make up the Autumn Budget 2014. Economic uncertainty has been commonplace in past budgets but there is certainly a sense of optimism with the plans announced today and the rise of forecasted growth in GDP is testament to this.

With the objective of reducing the current deficit and sustaining economic recovery within the UK, the autumn budget can be characterised by several expansionary policies with a particular focus on the growth of small to medium sized enterprises (SMES).

Investment


The treasury have pledged a further £400m to increase government backed ventures via Enterprise Capital Funds. Investment is essential for the growth of a company and this is good news for new start-ups and established enterprises alike.

The increased availability of investment promotes entrepreneurialism and is a big boost for new start-ups looking to build a sustainable foundation for the future. As an established company, a rise in government backed ventures could increase the market for your services and you may see demand for your services rising.

Credit availability


The autumn statement outlines major increases to business lending. The treasury have vowed to guarantee up to £500m of new bank lending to SMEs. The increase of credit availability aims to encourage business spending. The increase of funding available is certainly a positive for small companies aiming to raise capital.

Apprenticeships


In the interest of reducing unemployment and improving the labour market, George Osborne has announced reforms to apprenticeships. National Insurance for young apprentices is to be abolished which could impact you in the short term, particularly if your company operates in the industrial sector. In the long term, incentivising apprenticeship schemes should theoretically improve the quality of labour available to you as a company.

Business Rates


The antiquated business rates system is also to be reviewed. Under the current system the rates paid can often be disproportionate to revenues and are a burden to small companies. A review of this system is a welcome move and should ensure the growth of your company is not impaired by an outdated system.

The proposed fiscal measures aim to use the growth of small businesses as a vehicle for economic success and, overall, the autumn budget should be a cause of optimism for your company.