Almost a year and a half after the Brexit decision, the United Kingdom is now looking for ways to set itself up for a successful future. British Chancellor Philip Hammond gave a recent speech in which he introduced the new Budget and took the time to highlight key measures for upcoming businesses and industries. For those looking to see a quick list of winners and losers, check out the link below: http://www.independent.co.uk/news/business/news/budget-2017-the-winners-and-losers-from-small-businesses-to-tech-giants-a8070296.html
For this article, we are going to focus on the new budget and what it means for small businesses.
To start, the minimum wage will increase from 7.50 to 7.83 per hour meaning a slight raise in employee expenses for those paying the absolute minimum. To combat this, annual business rates will increase slower than they have in the past. This move is schedule to take place over the next 2 years and save businesses up to 2.3 billion. A major change small businesses can be happy about is the elimination of the “staircase tax”. According to Independent “this had seen companies operating over several floors within the same property being handed separate rates bills for each occupied floor, as opposed to one bill for the entire premises.” A simpler tax code for multiple floor businesses is always better.
Other changes are schedule to be made but its effect depends on the industry you partake in. For now, UK small businesses can be happy with the quick changes and we will see if this can help stabilize the country’s growth rates moving forward.