This week’s Autumn Statement from the Chancellor of the Exchequer George Osborne contained a raft of announcements designed to bring security to the economy and stimulate business growth.
Mr Osborne pledged: “We will do whatever it takes to protect Britain from this debt storm, while doing all we can to build the foundations of future growth.”
So, we asked our team which initiatives will have the most impact and benefits for SMEs in the coming year.
Finance for Small Businesses
The Government has announced it is to underwrite at least £20 billion (possibly up to £40 billion) of business loans under the National Loan Guarantee Scheme, set to run for two years from 2012. This could deliver up to a one percentage point reduction in the cost of a business loan, but if credit checks and lending criteria are not relaxed, will this new scheme have a real chance of boosting growth?
We recommend you go back to basics with a solid business plan, backed up by cash flow figures and realistic growth forecasts, and you may have a better chance of getting funding to take your business to the next level.
Changes For Employers
Getting the right team in place is essential to help your business thrive – but dismissing unsuitable staff can be a minefield. The qualifying period for unfair dismissal claims will increase from one year to two from April 2012, making it more tempting for employers to recruit new staff. There are also plans to make the dismissal process simpler and quicker, and fees will be introduced for those who want to bring cases to employment tribunals. The prospect of new Compensated No Fault Dismissals for smaller businesses with fewer than ten staff means employees could be dismissed with no possibility of a tribunal – unless discrimination is involved.
Disputes and tribunals can be costly for small businesses. For a useful guide to your obligations as an employer, visit: http://www.businesslink.gov.uk/employment
Travel Expenses
The planned fuel duty increase of 3 pence per litre due to take effect on 1st January has been dropped, and the 5 pence per litre increase scheduled for 1st August 2012 will go down to 3 pence, giving some relief to commuters and businesses where travel is a necessity.
Don’t forget to keep your petrol receipts and log your business mileage. The Tempo online accounting system means you can upload receipts using our iPhone app and we can help you keep track of your travel expenses.
Business Rate Relief
The holiday on business rates for small companies announced in the Budget has now been extended from October 2012 until April 2013. All businesses, including larger ones, will be able to defer 60% of next year’s rise in business rates to the two following years.
Thinking of opening a new business premises? Find out more about business rates at: www.businesslink.gov.uk/businessrates
For full details of the Autumn Statement visit: http://www.hm-treasury.gov.uk/as2011_index.htm
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