“This Budget delivered some welcome surprises for SME businesses in the UK, with the government going further than expected with business rate cuts and a pledge on Statutory Sick Pay to help tackle the potential and increasing threat of coronavirus.
“Retail, leisure and hospitality businesses with a rateable value of under £51,000 will benefit from a 12-month break on their business rates. This is a significant boost for a some of the UK’s most vital sectors and should help to boost business confidence.
“Pubs with a rateable value below £100,000 will also benefit from an increase on the expected £1,000 rate relief with this moving to £5,000 for the next year. Given some of the positive figures from the ONS in relation to the growth of UK pubs earlier this year, this could help the sector continue its upwards momentum.
“A commitment from the government to pay Statutory Sick Pay for up to 14 days for any workers impacted by coronavirus will also help the cash flow of many UK SMEs. We’re pleased to see the government go further than expected with this measure.
“An announcement from the Bank of England that it will also offer new incentives for banks to lend more to SMEs was also madeWhat , however, the specific details of this are still unclear. Banks have traditionally made it tricky for many SME businesses to access funding and it remains to be seen if these schemes will actually deliver what is hoped.”
“It’s disappointing that the government wasn’t able to provide any certainty or security around the future of the Annual Investment Allowance (AIA). An extension to the limit could have proved extremely useful to many manufacturers and could provide business owners with the opportunity to invest in much needed technology and innovation, supporting them in their future growth plans.
By John Rozenbroek, CFO and COO at Capify