Here at K A Farr & Co, we like to take an interest in the goings on in the world around us and this is a very topical post.
As you’ll all know by now, the Conservative party won the general election earlier this year and they have formed a single party, majority government. In this post, we’re going to cover the key points about what a majority Tory government will mean for small businesses in the UK over the next five years.
The Conservative Government set out their stall initially by pledging to increase the number of start-ups to 600,000 a year by 2020 which is no great shakes as there were over 580, 000 new businesses created in 2014.
Now a lot of entrepreneurs and business owners want to see the Tories deliver on the rest of their small business manifesto including more investment in super fast broadband for entrepreneurs and also a review of the benefits for the self-employed and a trebling for the start-up loans programme.
A number of employers want greater flexibility in their hiring and firing decisions, as well as a reduced risk of being taken to an employment tribunal.
The Beecroft report which was put out during the last government suggested a radical shakeup of employment legislation, including a controversial proposal to allow employers to make no-fault dismissals or as its critics called them, “firing at will”.
This was overruled by the Liberal Democrats but now, a majority Tory government can look again at these suggested changes which, in the eyes of certain entrepreneurs and business owners will help to make it easier to “compete with the Americans”.
Red tape is something that a number of business owners will be hoping that a full blooded Tory government will slash all of the unnecessary regulations and paperwork. A number of business owners complain that these processes are often costly, time-consuming and also prevents them from employing people and investing.
As you may have expected, the Tories have pledged to reduce these regulations and in the process, help to save businesses £10bn during this parliament.
One thing that George Osborne no longer has holding him back is the Lib Dems. Business owners can now expect to see a raft of new changes including increases in personal tax allowances, national insurance holidays, a cut in corporation tax and also a freeze on VAT.
It’s expected that there will be a review of business rates but how the government will handle one of its major cash cows remains to be seen. The chancellor plans to cut taxes, boost jobs and also reduce the UK deficit through growth.
There are a number of things that will more than likely help the new businesses in the country with things such as exemption from national insurance contributions for the first ten employees for two years and also scrapping NI for those aged under 21.
Chancellor of the Exchequer, George Osborne has called an emergency budget. In what is being dubbed the ‘budget for working people’ also aims to spell out how the Conservative party will cut £12bn from Britain’s welfare bill.
In what will be Osborne’s second budget in less than four months on July 8th, he will reveal how the government plans to cut the British welfare bill and also to announce a fresh wave of austerity measures.
Treasury sources have also said that the budget is set to address Britain’s poor productivity record which has held back growth in living standards and that there will also be an announcement on plans to create 3m new apprenticeships.
Here at K A Farr & Co, we’ll keep you fully updated with everything that goes in the budget so keep checking back to our blog to stay updated with all the latest news.