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On Wednesday 27 October, Chancellor of the Exchequer Rishi Sunak presented his autumn Budget, which outlined the UK Government’s tax and spending plans for the year ahead.
However, while Mr Sunak sold the contents of the Budget as paving the way to an “economy of higher wages, higher skills, and rising productivity” for the “post-COVID” era, small and medium-sized businesses were mixed in their response, with some suggesting he hadn’t gone far enough to support them.
What have firms been saying about the Chancellor’s plans?
Among those reacting to the Budget announcements was Tillie Peel, founder of The Pop-Up Club in London, who was quoted by the i newspaper as saying greater help was needed for independent retailers and traders.
On the subject of the Chancellor’s confirmation of a 50% cut in business rates – up to a cap of £110,000 per business – for firms in the retail, hospitality and leisure industries in England in 2022-23, she argued that “business rates are still unfair and don’t support the smaller businesses that would benefit greatly from access to those high-street spaces”.
She continued: “Instead, they favour the bigger household names and larger retailers. This will only lead to making it harder for smaller businesses in the long run”.
Meanwhile, the Financial Times quoted verdicts on the Budget from several businesses. One owner of a high-end food processing company complained that the measures announced by the Chancellor did little to lessen the strain on his business, which does not qualify for the aforementioned cut in business rates, despite the fact that his firm supplies the hospitality, retail and leisure sectors.
Another businessperson cited in the FT story – who runs hardware stores in central London – did welcome the 50% cut in business rates for retailers like his, as well as the Chancellor’s promise that these would be subject to re-evaluation every three years.
However, he also called for online retailers such as Amazon, with their vast warehouses that aren’t taxed as heavily as premium high-street space, to be asked to contribute more.
“Online – they have done nothing on that,” he commented. “I know they are looking at it, though. We have won one battle. Now, let’s win the war.”
Our accounting services can help navigate your organisation through a wide range of circumstances
Every small or medium-sized business is different, of course, as we are well-placed to know here at TS Partners. With our considerable knowhow, experience and track record in accounting in Plymouth and Wellington, we can help relieve your own firm’s burden at what might be an exceedingly challenging time of recovery.
For a more detailed discussion of what that could mean for you, please do not hesitate to reach out to our team via telephone or email.
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