UK chancellor Philip Hammond is set to implement changes that will affect UK businesses with the Spring Budget 2017, which will be announced on March 8th.
A key focus for businesses and firms is how the government is set to reform business rates. With the Spring Budget, the rate relief value has been increased from £6,000 to £15,000. The government will permanently double small business rate relief in England. As a result, more that 600,000 small and medium-sized businesses (SMEs) won’t need to pay business rates.
The hike in business rates last April opened up the need for small businesses across the UK to seek financial help from the government. With inflation also starting to effect confidence levels, the chancellor is set to reinforce the understanding that Britain is open for business and will drive and support growth of small and medium sized companies.
The focus on post-Brexit strategy, business rates, social care funding and simplifying tax are all part of the plan for the new budget set to come into play in April.
Gary Turner, co-founder at Xero shared his predictions on the upcoming Spring Budget: “With the new budget on its way, it is up to the government to assist businesses where it can, especially in light of current uncertainty. I hope the budget revisits the business rates hike, perhaps by implementing different minimum thresholds for different parts of the country.”
“Small businesses have a much smaller capacity to absorb such costs and failing businesses have the potential to severely affect the economy.” he adds.
“Both the content and the tone of this year’s budget will need to inspire a nation. We need this year’s budget to help consumers and producers know that the UK has a bright future and, regardless of people’s opinions about politics and the economy, will thrive in 2017”, says Turner.
The General Data Protection Regulation (GDPR) will be enacted on May 25 2018 and promises to revolutionise the way that firms collect, store, process and protect the personal information of customers, clients and employees.
The one-notch downgrade by the credit ratings agency is the first for nearly 30 years.
The new rules aim to prevent companies overpaying tax and to increase the competitiveness of the eurozone.
The proposed new tax, announced two weeks ago in the federal budget, is due to be introduced on July 1 and will raise A$6.2bn for the government over the next four years.