Autumn Statement promises help for sign-makers
The Chancellor of the Exchequer George Osborne has made his Autumn Statement in which he promised to help small businesses and industry with a number of measures.
Wednesday, 03 Dec 2014 15:12 GMT
Political statement: George Osborne’s announcements could help small businesses
His most welcome announcement was that finally business rates are to be looked at. The tax has hindered many firms and even led to companies either closing or moving, and in particular has hit small businesses in the high street due to their disproportionately high level.
The main criticism about the tax, which dates back to the early 17th century, is it is not flexible. Rates are calculated for business properties every five years meaning if there is a down-turn firms are stuck with a tax when their income falls. The government likes it as it is easy to collect but have vowed to look at it.
Rates are calculated for business properties every five years meaning if there is a down-turn firms are stuck with a tax when their income falls”
Another measure is for the research and development tax credit to be increased for SMEs, which further aid the growth of new technologies within sign-making. Meanwhile there’s more good news for firms wishing to take on young apprentices—they will no longer have to pay National Insurance contributions for these junior workers—which everyone in the industry hope will bring a new generation of sign-makers forward.
For Welsh sign-makers there’s the news that an agreement has been reached on full devolution of business rates to the Welsh Government. Hopefully this will allow more flexibility in the Principality over the tax that has hindered sign-makers for years, and in particular lead to the tax being lowered on smaller firms.
For Ulster sign-makers comes the news that corporation tax is to be devolved to Northern Ireland if the Stormont executive can manage the ‘financial implications’. It’s a two edged-sword, as larger companies will fear that it could lead to high taxes, although at this stage nobody knows how it will turn out.
With five months before an election many in the industry will be wondering if these announcements will come to pass in reality or whether they are just part of the political process ahead of the election. It’s an election which at the moment Labour (according to all opinion polls) is set to win with either a small overall majority or in coalition with smaller parties, thus throwing into doubt some of the Chancellor’s plans.
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