On Wednesday 22nd November 2017, Philip Hammond presented his Autumn Budget to Parliament. Dawn Whiteley, National Enterprise Network’s CEO shares her view on the impact this budget will have on the enterprise sector. “For our members and their clients, this budget is perhaps relevant more for what it didn’t do, than what it did. The […]
On Wednesday 22nd November 2017, Philip Hammond presented his Autumn Budget to Parliament. Dawn Whiteley, National Enterprise Network’s CEO shares her view on the impact this budget will have on the enterprise sector.
“For our members and their clients, this budget is perhaps relevant more for what it didn’t do, than what it did. The rumours about a change to the VAT threshold didn’t materialise. There was no IR35 extension to the private sector, and no changes were announced to the plans for the implementation of Making Tax Digital.
Most businesses will be happy to see some changes to Business Rates, the end of the staircase tax and the additional support being offered to assist those affected by revaluations.
The Enterprise Finance Guarantee, which facilitates loans to small businesses that are viable but are unable to obtain finance due to insufficient security to meet the lender’s normal requirements, will be extended to March 2022 and expanded to up to £500m of loans per year. It will also take on new lenders and offer a new asset finance option. This should be welcome news to those of our members already EFG accredited or looking to become so.
The Government will instruct the Post Office to raise awareness of the banking services available at the Post Office for small businesses; welcome news for those clients who have seen local bank branch closures.
The reduced growth forecasts are concerning, as are the lack of improvement in productivity. NEN are working with with start-ups and established businesses across the country to try to engender a culture of growth and innovation, so this is particularly disappointing.”
Here are 25 need-to-know points about this budget:
1. There are over 32 million people in work – near a record high
2. Borrowing has fallen by three quarters since 2010, but debt is still high
3. An extra £3 billion to prepare for Brexit over the next two years
4. £6.3 billion of new funding for the NHS
5. Abolishing stamp duty land tax (SDLT) on homes under £300,000 for first-time buyers from 22 November
6. 300,000 new homes a year, an amount not achieved since 1970
7. The National Living Wage and the National Minimum Wage will increase from April 2018
8. The tax-free personal allowance will rise with inflation to £11,850 from April 2018
9. Fuel duty will remain frozen for an eighth year
10. A new railcard for those aged 26 to 30
11. Duty on beer, wine, cider and spirits will be frozen
12. Duty on tobacco will rise
13. 95% of passengers will not see an increase in their Air Passenger Duty
14. Households applying for Universal Credit will get more upfront support
15. Electric and driverless cars
16. The world’s first national advisory body for artificial intelligence (AI)
17. More investment in maths and science in schools
18. £64 million for construction and digital training courses
19. A £220 million Clean Air Fund for local areas with the highest air pollution
20. Reducing single-use plastics waste
21. Business rates will switch to being increased by the Consumer Price Index (CPI) 2 years earlier than planned
22. Pubs in England will continue to receive a £1,000 business rates discount next year
23. Stopping digital multinationals who hold intellectual property in low-tax countries from avoiding tax
24. More money for Scotland, Wales and Northern Ireland
25. Funding for transport across England