Autumn Statement – What it means for SMEs

On the 29th November an updated forecast was published by the Office of Budget Responsibility on the UK economy. This was followed up by a statement from Chancellor George Osborne later that same day in the House of Commons.

 

It has been a few days since these announcements and you have had time to absorb everything. Still a little confused on how it is relevant to you and your business?

 

Determined to help, we have compiled some key points that will affect the SME around Leicestershire.

 

The Autumn Statement lays out an action plan by which the Government aims to;

–         Protect the economy

–         Build a stronger economy for the future.

 

There are three major areas that are going to affect SME;

 

Availability of Credit

Employment regulations and

Youth contracts

 

Credit –

The government is hoping to increase the amount of credit available to small businesses. The government will be contributing £20 billion to the National Loan Guarantee Scheme and another £1 billion to the Business Finance Partnership. It is hoped this will encourage banks to reduce the cost of borrowing for SMEs.

 

Employment regulations –

The government is also changing employment regulations to make it easier to let staff go which some worry that may become a culture of hiring and firing.

 

There will be research into reducing the complexity redundancy processes for companies with more than 100 employees down to 60, 45 or even 30 days where possible. The government also want to look at ways of making tribunals cheaper and quicker with very simple cases going through a ‘Rapid Resolution’ programme.

 

Youth Contracts –

With new figures of youth unemployment emerging at over one million the government are now giving incentives to businesses that take on young people. These include;

 

–         Wage incentives for 160,000 young people so private sector businesses can afford to take on more staff

–         Aiming to create 40,000 apprentice places through cash incentives for small businesses.

 

Of course this is a very brief summary and if there is anything you are unsure about or if you want advice on how to improve your business call us on our FREE phone number 0800 652 1614.

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