Spring Statement marks an exciting time for UK SMEs
The desire which Rishi Sunak highlighted in the Spring Statement to provide greater incentives for small businesses to invest and grow is encouraging; more government help is needed to aid the UK’s impressive private sector to grow and progress and this is a step in the right direction. By outlining the options and consultations to further these ambitions, it seems a significant step has been taken by the UK to permanently move towards a form of corporation tax seen on the European continent, which will allow for bigger investment allowances, but will come with higher rates.
The Chancellor also announced that the government will raise the threshold people earn before they pay National Insurance. Meaning from July, people will be able to earn £12,570 a year without paying any money to income tax or National Insurance, which marks the largest increase in a basic rate threshold ever and the largest single personal tax cut in a decade. The Chancellor announced a plan to cut the tax on business investment in the autumn budget as he sees ‘people, businesses and ideas’ as the way to progress the UK economy. Sunak said that the Employment Allowance will increase to £5,000, claiming it is a tax cut worth up to £1,000 for half a million small businesses.
Moving forward, one of the most impressive sectors in the UK private sector is set to be within small businesses and it is refreshing to see the Chancellor realising this. SMEs throughout the UK have battled obstacles over the past few years to register an impressive growth throughout 2021 and have continued this momentum into 2022 with 56.2% of SMEs reporting a rise in earnings in the last quarter of 2021 versus the same period of 2020. Small business leaders must be ready to adapt to the announcement in the Spring Statement in order to continue to progress and grow their companies.
There is a huge amount of ambition and talent throughout the UK small business ecosystem, and it is an exciting time for SMEs, both from an investing and business standpoint. At IW Capital, we are always searching and looking to invest in small businesses in their growth journey to provide them with the opportunity to thrive and succeed. It’s great to see the shift from the UK public to have the desire to choose small businesses which paints an optimistic picture for the coming months which are normally crucial for businesses.
To find out how IW Capital could maximise your investment opportunities, please contact the team today on 020 7015 2250, or email info@iwcapital.co.uk.