Making ‘full expensing’ permanent and a £50m fund for apprenticeships were some of the headlines as small businesses took centre stage in Chancellor Jeremy Hunt’s Autumn Statement.
In a wide-ranging list of pledges to cut business taxes, the Chancellor detailed how the retail, hospitality and leisure industries would benefit from another year of reduced rates, announced a freeze on alcohol duty and set out a £500m package to encourage AI innovation.
Stating that “every big business was a small business once”, Hunt said he was unveiling 110 measures for British business that would support business spending in the economy to the tune of £20bn a year. Some of the key announcements were:
– ‘Full expensing’ made permanent: businesses can claim back 25p in corporation tax for every £1 invested in IT, machinery and equipment
– The small business multiplier frozen for a year at 49.9p
– 75% discount on business rates – up to £110,000 for retail, hospitality and leisure businesses extended for another year
– £50m dedicated to funding apprenticeships
– £500m invested over the next two years to help make the UK “an AI powerhouse”
– Legal minimum wage to increase from £10.42 to £11.44
– Planning applications for businesses to be granted more quickly
– Help to end plate payments by modifying government procurement to favour businesses that pay their own invoices on time
The Federation of Small Businesses described the measures as “game-changing”, stating that the Chancellor deserves credit for addressing the real concerns of small businesses.
The Government’s attempts to tackle late payments will certainly come as a relief to the UK’s vital SME community. Capify’s Q3 Business Confidence Survey found that 64% of SMEs’ cash flow has been impacted by late invoice payments in the past year.
The economy may be forecast to grow more slowly than expected, but the much-anticipated Statement gives SMEs in the UK valuable clarity as they update business priorities and budgets for the year ahead. For full details on the 2024 Autumn Statement visit https://www.gov.uk/government/publications/autumn-statement-2023
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