Spring Statement should support small businesses

Later today (March 23, 2022), Chancellor Rishi Sunak will put forward his 'Spring Statement' on measures which will affect business, tax and the economy.

Freelancers will be watching closely for any indications that there might be further restrictions on their working practices.

In fact, for the freelancer community, no news is probably the best news they want.

There are also concerns about the proposed increases in NICs and a few 'fingers-crossed' wishes for a postponement in this area.

Support small businesses

Many small business representative and industry groups have been calling on the Chancellor to consider key measures to support the small business communities, particularly in the light that company insolvencies doubled in February.

One such organisation, Purbeck Personal Guarantee Insurance, the provider of personal guarantee insurance to small business owners, suggested three key areas:

• Tailor the Recovery Loan Scheme or its successor to those sectors which have been more adversely impacted by the pandemic and are now in recovery mode and now being hit by inflationary pressures.
  
• Implement initiatives to support small businesses with rising energy costs (e.g. business rates rebate) or special small business subsidies. At the same time, consider initiatives for small businesses to support (and support to introduce) their own green agendas and move to renewables.
  
• Introduce further tax incentives to support small businesses. This could include increasing the annual investment allowance; supporting start-ups with a reduced rate of corporation tax (for certain turnover thresholds); tapering of the NIC rate to encourage recruitment of young workers and apprentices.
  Support the FSB's agenda to help end the UK's poor late payment culture by making Audit Committees directly responsible for ensuring best practices within supply chains.

Todd Davison from Purbeck Personal Guarantee Insurance said: "Lending to small business is recovering according to the latest British Business Bank report but given the news this week that company insolvencies have doubled in February 2022, clearly the Chancellor should be considering a multi-pronged approach to give much-needed support to small firms now facing multiple cost issues.

"We certainly hope that he will be on the case and that The Chancellor will take The Spring Budget as an opportunity to increase the support available to small businesses in recognition of the extremely challenging mix of trading conditions they are now facing."