As part of today’s Spring Budget, Chancellor Jeremy Hunt pledged to provide small and medium enterprises (SMEs) across the UK with further support.
To alleviate current pressures upon business owners, the Government pledged to provide £200m in funding to extend the Recovery Loan Scheme as it transitions to the Growth Guarantee Scheme.
According to Hunt, this move will help a further 11,000 SMEs access the finance that they need.
In light of this, Newspage asked small business owners for their verdict.
One said “very thin gruel for SMEs”, another: “A grey, dull and drab Budget from a robot-like Chancellor.”
A third said: “The extension of the freeze in alcohol duty is welcome but will not help to support independent pubs, which are currently grappling with an unprecedented crisis.”
A fourth added abolishing holiday let tax relief “will damage the tourism economy across our coastal communities.”
One business owner concluded: “As a business owner, parent of two school aged children and son of elderly parents, one of whom has dementia, I don’t understand the logic of a National Insurance cut.
“Public services are all but on their knees, the NHS is seriously struggling, yet we’re cutting taxes.”
The views of a number business owners are below.
Reaction:
Daniel Wiltshire, actuary and IFA at Wiltshire Wealth:
“Very thin gruel for SMEs.
“It’s as if the Hollow Men at the Treasury are trying to ostracise the most productive part of our economy.
“Once the party of enterprise, the Conservatives are now the party of corporate statism.
“And Jeremy Hunt is the perfect conduit.”
Samuel Mather-Holgate, Independent financial adviser at Mather and Murray Financial:
“Groundhog day. A grey, dull and drab budget from a robot-like Chancellor and a double-glazing salesman of a Prime Minister.
“The only marginal changes to the fiscal regime had widely been leaked and nothing of note was added.
“The lack of stimulus to business and the wider economy is surely a sign the white flag of election defeat is waving. Struggling households will be left dismayed.
“This was an opportunity to provide for those on low income whilst stimulating growth by raising personal allowances, cutting VAT and introducing tiered corporation tax similar to personal tax bandings.
“Kier Starmer and Rachel Reeves will be doing high fives on the way out of the Commons, free to introduce a raft of bold policies to restructure our economy after the election.”
Kate Allen, owner at Finest Stays:
“Another paltry vote-winning trick of smoke and mirrors from the Chancellor.
“Pulling the Furnished Holiday Lettings regime out of the hat like a despondent bunny rabbit won’t raise anything like the sums intended, and will damage the tourism economy across our coastal communities.
“Deterring second home owners from renting out their properties will leave properties unoccupied as owners won’t see the yield worth the effort of renting out.
“Hollow out whole communities, abracadabra.”
Amit Patel, adviser at Trinity Finance:
“Increasing the VAT threshold for small businesses from £85,000 to £90,000 is good news.
“Smaller businesses are the lifeblood of our economy and this will help reduce the pressure many are under.”
Chris Steele, founder at myTribe Insurance:
“As a business owner, parent of two school aged children and son of elderly parents, one of whom has dementia, I don’t understand the logic of a National Insurance cut.
“Public services are all but on their knees, the NHS is seriously struggling, yet we’re cutting taxes.
“This feels very much like a policy designed specifically for votes at the election, but it flies in the face of the reality many of us are seeing from public services.
“Of course, I don’t want to pay more in tax, but if that’s what it takes to improve the services we all rely on, then so be it.”
Ross Lacey, director and chartered financial planner at Fairview Financial Management:
“I’m disappointed not to see any reductions in corporation tax for business below a certain size or adjustments to dividend and capital gains tax allowances.
“However, it’s a positive that National Insurance has been reduced for all.”
Alison Boutoille, founder at CityStack:
“The extension of the freeze in alcohol duty is welcome but will not help to support independent pubs, which are currently grappling with an unprecedented crisis.
“For small businesses, having a long-term view on tax strategy is crucial. Building a sustainable business takes time and stability.
“Knowing what the tax landscape will look like post-February 2025 would provide much-needed clarity, enabling landlords to feel more secure.
“Working every day with landlords who fight tirelessly to keep their business running, I witness a lot of stress.
“The massive increase in operating costs since 2019 (+43%) has strongly contributed to the disappearance of many treasured pubs, and it sadly sees no sign of abating: 750 pubs are expected to close in the first half of 2024.
“This situation is notably more difficult for independent pubs, given their lower bargaining power and limited resources.”
Tom Bowers, founder at Hypothesis Media:
“As a one man band limited company business owner focusing on innovation in the creative sector, I’d really like to have seen a reduction in Corporation Tax.
“My income is effectively taxed twice, both when it hits the business account and then when I drawn down dividends.
“In order for me to even consider voting Tory I needed to see them investing in small businesses who are trying to make a difference for the longer term.”
Stephen Perkins, managing director at Yellow Brick Mortgages:
“Even the world’s most observant optimists would struggle to find any positives for the property market in today’s budget.
“With an election coming up, I’m not sure simply trying to avoid another ‘Trussenomic’ disaster is ambitious or impactful enough.
“Small businesses and the economy will not be inspired by this budget speech.”
Lewis Shaw, owner and mortgage expert at Shaw Financial Services:
“We’ve got a tax burden at the highest levels since the 1940s, the worst fall in living standards since the 1950s, public sector net debt at its highest levels since the 1960s and real incomes contracting at the fastest rate since the 1970s, and the Chancellor expects the public to believe they’re competent at running the economy.
“What bubble do these people live in? You only need to walk down a high street to see that all this talk of a growing economy is bovine excrement.
“If they think a 2p cut in National Insurance can bribe the public, they’re in for a rude awakening.
“However, every cloud has a silver lining; at least we can get pissed at a slightly lower cost than it would have been and drown our sorrows after such a lacklustre budget and a knackered economy.”
Gary Bush, financial adviser at MortgageShop.com:
“There was nothing really in the Budget for the cash-strapped UK households other than the drop in National Insurance contributions by 2% affecting 27 million people.
“The child benefit changes need to be seen written down before they can be equated to anything really, although tweaking to remove the unfairness that’s been identified is a good thing.
“The only property part that could be seen as good news is for first-time buyers in that holiday lets will become less popular to investors, freeing up some more homes for residential purchase.
“If this was supposed to gain votes in the upcoming General Election it has well and truly missed the target.”
Jenny Blyth, small business owner at Storm in a Teacup Gifts:
“As expected, Jeremy Hunt’s Budget was filled with hot air and not a great deal of substance.
“I was surprised to hear, however, that small business is close to the Chancellor’s heart, which was was a novelty if nothing else.”
Imran Hussain, director at Harmony Financial Services:
“BUDGET SMUDGEIT – There is nothing radical nothing but hot air from Hunty’s mouth just like this current government for the past 14 years.
“With nothing in the budget to help first-time buyers, or families on the brink of oblivion, the smallest of changes to SMEs will do bugger all.”
Justin Moy, managing director at EHF Mortgages:
“Much of the benefit from tax cuts unfortunately has disappeared into higher borrowing costs for homeowners and business owners.
“Cuts to lending rates will have a much larger influence on our economy than any 2p cut in the tax paid by individuals.”
Andrew Montlake, managing director at Coreco:
“The Chancellor was trying to tread a fine line between delivering what the country needs and can afford, versus an increasingly desperate attempt to get voters onside before a General Election.
“The result was a damp squib of a Budget, long in length but short in cheer, especially for those in the property market or for first-time buyers.
“Considering how important the housing market is, it was surprising that there were only minor announcements.
“Abolishing the furnished holiday lettings scheme and removing the stamp duty relief to those buying multiple properties at the same time will have a small effect, but limited at best.
“Reducing the higher rate of property CGT from 28% to 24% may encourage some more to sell, but it won’t send people who are not already to estate agents in a rush to sell up.
“With white rabbits conspicuous by their absence, the Chancellor has gambled the house on a further 2% National Insurance tax cut, which, whilst welcome, may prove to fall well short.”
Charles Breen, founder at Montgomery Financial:
“This was a limp effort of a Budget, providing too little, too late for a struggling economy. It’s an unimpressive gamble from Hunt leaving voters and the economy wanting more.
“In the fear of being Trussonimics 2.0, they have left us feeling that the government is totally out of ideas to free us from this quagmire of low growth and low productivity that we are in.
“Hunt sidesteps Clinton’s timeless economic truth of “it’s the economy stupid!”, leaving us little hope for change and feeling like a confederacy of dunces is leading us to stagnation.”
Michelle Lawson, director at Lawson Financial:
“What an embarrassing show this Budget was. It accurately portrayed the circus our country has become.
“This was certainly not an election-winning Budget, so either they have just given up or are plain out of ideas.”
Mark Robinson, managing director at Albion Forest Mortgages:
“That was a very underwhelming Budget given that the current Government needed something big.
“I imagine this could mean they are planning the General Election for after the Autumn Statement so they can make all their big announcements then.
“How they managed to make this Budget take an hour to present is beyond me.
“Zero help for the housing market or first-time buyers shows a lack of support from the conservatives.”
Ben Perks, managing director at Orchard Financial Advisers:
“Far from the white-knuckle ride that was the Truss Budget, most of this Spring Budget was pretty uninspiring.
“Even the embarrassingly childish behaviour of MPs didn’t inject excitement. Perhaps the uneventful nature of the Budget was in fact a blessing in disguise.
“Initially it seems this is a Budget that focused on stability, and sawp rates should react positively to this.
“If they do, we may see them reduce in the coming days.
“As a bi-product of this, better rates will then start to become available to borrowers. If you believe it, it was also reassuring to hear the Chancellor say that inflation should fall below 2% in just a few months.
“This surely puts a lot of pressure on the Bank of England to reduce the Base Rate, which will further improve opportunities for borrowers.
“Sadly, there were no announcements to help mortgage borrowers specifically and nothing to stimulate the property market, which could have been a missed opportunity ahead of a General Election.”
Dariusz Karpowicz, director at Albion Financial Advice:
“This measure aims to stimulate the housing market by encouraging more transactions, with the expectation of increased revenue.
“While this tax cut represents a step in the right direction, addressing the broader issues plaguing the UK’s housing market requires a more comprehensive and bold approach.
“The reduction in capital gains tax, though beneficial, is unlikely to be a panacea for the challenges faced by many seeking affordable housing.
“The UK’s housing crisis, characterized by high prices and a shortage of affordable homes, necessitates a multifaceted strategy that goes beyond tax adjustments.
“To truly transform the housing landscape, more innovative and courageous reforms are needed, targeting the root causes of the crisis.
“This could include measures to increase the supply of affordable homes, improve the accessibility of financing, and ensure a fairer distribution of housing resources.”
Ben Foster, CEO at The SEO Works:
“The cut in National Insurance will be swamped by pending increases to council tax, as local authorities are further cut to the bone.
“And freezing a rise on duty such as alcohol and fuel is not the same as cutting it.
“This is a smoke-and-mirrors budget designed to create some political brownie points ahead of the election.
“But having already experienced a decade of decline, have the public already made their decision?”