Truss Government off to flying start – Chancellor delivers small business policy in mini Budget
Responding to today’s fiscal event, Martin McTague, National Chair of the Federation of Small Businesses (FSB), said: “The Truss Government is off to a flying start. The Chancellor has delivered pro-small business measures today and has rightly recognised that removing taxes on jobs, investment and entrepreneurs is essential for our economy.
“Ministers need to be relentless in removing barriers to small business success – especially with the current headwinds. The Government has today signalled its determination to back small firms and we look forward to working with Ministers and departments to put in place measures to help small businesses grow and succeed.”
National Insurance hikes reversed
“The confirmation that the NICs hikes introduced in April will be reversed is good news for small businesses and the self-employed.
“FSB has been campaigning to have this reversed, and it’s very welcome to see the incoming Government heard us.
“Reversing all four NICs rises – employer, employee, self-employed and the dividend equivalent – will help small businesses and the self-employed at a time when that could not be more needed. Keeping the Employment Allowance at £5,000, an increase FSB fought for, is doubly welcome.”
Corporation Tax increase scrapped
“It’s good that the planned Corporation Tax increase has been scrapped. The £50,000 threshold for the main rate would have captured many small firms, so keeping tax on profits over £50,000 at 19% is welcome.
“This will free up funds for small businesses to invest, and mitigate the impact of continuing high inflation levels.”
“The Chancellor has done the right thing in getting rid of IR35.
“Scrapping the poorly thought-out, unnecessary and burdensome IR35 rules that restricted small businesses’ and self-employed people’s ability to do the work they need is a very positive move.”
“The proposals for investment zones, where business taxes will be reduced and planning rules eased, shows welcome resolve to levelling up by being pro-business.
“Levelling up can only succeed if small businesses in communities across our country are backed to grow, invest, and create new jobs. We look forward to working with Government and the small business community to make investment zones a success, and to ensure that they work both for the small firms already working in these areas, and new small firms starting up.”
Annual Investment Allowance
“Keeping the Annual Investment Allowance at £1 million, rather than reducing it to £200,000, will be good news for small businesses considering significant investments.
“In order to achieve economic growth goals, for everyone’s benefit, investment and productivity must be prioritised and incentivised through the tax system. This will ultimately lead to the higher wages and more technologically advanced economy that the Government is aiming to create.”
“The UK is a major destination for global tourism, and keeping incentives for international guests is a smart move.
“The tourism sector is hugely important for small firms, and for the economy overall. International tourists contribute billions to the UK economy, supporting millions of jobs, and allowing them to continue to shop VAT-free will help maintain the flow of visitors to our tourism hotspots.”
Alcohol duty reforms scrapped
“We’re pleased that the planned reforms of alcohol duty have been scrapped. The complexity of the planned changes to alcohol duty announced earlier this year would have meant that small retailers would have had to calculate many different levels of duty based on alcohol levels, which would be very challenging to administer and properly account for.
“The news that the current system will be retained is therefore helpful and will not put small independent wine and beer shops at a disadvantage compared to larger rivals with more sophisticated systems, as would otherwise have happened.”