Small Business Matters

The small business vote

The campaigns have finished, the polling stations are now open and the finish line of the election race is in site.

After weeks of listening to the party leaders outlining their plans and making their promises, today is the day we get to have our say.

Small business have been crying out for government support for the past year and now is the chance to use your small business voice and vote for the support you would like to see from the incoming Government.

There have been promises of enterprise funds, National Insurance exemptions and easier access to investment, to name a few. Now is the time to consider what it is you would like to see as a result of a new government, to take advantage of this opportunity and vote for what your business needs.
 

 
Finally, if you’re an avid Twitter fan, don’t forget to Tweet  your vote and help keep track of voter turnout.

Rumours of another VAT hike

With the election looming and only a couple of days to go before people make their way to the polling stations, rumours are rife as to what each party will and will not do if elected.

With the rumour mill hitting fever pitch the latest murmur is that a VAT increase may be announced shortly after the elected party comes to power.

With total government debt now at £890 billion (or 62% of GDP), and a deficit of £162.4 billion, the highest it’s been since the Second World War, there’s no doubt that tough decisions will need to be made.

Considering that the current UK VAT level is one of the lowest in Europe, it has come to the fore as one of the most straight forward ways to raise money and therefore an obvious plug for the gaping hole, with rumours abound that the VAT rise could range anywhere between 18.5% to 19.5%.

While this increase will provide quick relief to the deficit it’s going to place unwanted pressure on small businesses and add to the administration headache that the recent VAT hike caused following its return to 17.5% in January.

Whatever the outcome of the election there are sure to be some changes and unexpected surprises from the incoming government and a rise in VAT could possibly be one of them. With this in mind we think it’s best to keep your ear to the ground and make sure you are fully prepared for the administration upheaval that these changes will undoubtedly cause. And just in case the VAT rumour becomes reality, be aware of the tasks involved in adjusting to a new VAT rate.

Stay tuned…

A small business manifesto or not?

Election season is in full swing and each party is grasping every chance they can to secure votes and win over the British public. History is being made as each of the parties have announced their manifestos and are participating in the first ever series of live TV election debates. But the question is did they reveal any solid plans to support small businesses?

On the whole, a popular theme appears to be a reduction of red tape that should allow small businesses to get up and running quickly, as well as improving access to finance and loans where possible.

Labour was the first to outline their manifesto which didn’t hold any major surprises. It included various benefits for small businesses such as continuing the Time to Pay Scheme, increasing the Entrepreneurs Relief lifetime limit to £2million and a promise to launch a Social Investment Bank. However there was also some bad news when it was revealed that National Insurance contributions would increase by one penny.

Next up was the Conservative Party. In contrast they promised not to increase National Insurance contributions and have gone even further and committed to certain temporary exemptions from National Insurance as well as cutting the Corporation Tax rate from 22p to 20p for small firms.

Finally the Liberal Democrats  promised they would support the establishment of Local Enterprise Funds and Regional Stock Exchanges to help local investors put money into growing local businesses as well as committing to a plan of breaking up the banks and developing various local and regional sources of business finance.

It’s clear from the different manifestos that the three parties are determined to bag the small business vote.  Given that there are around 4.7 million small businesses in the UK, employing up to 13.7 million people, the parties can’t risk ignoring the support small businesses are crying out for. Tell us what you made of the manifestos and what more you would like to see the parties doing for small businesses and make sure you get voting on May 6th!

Will this be an election for UK small businesses?

It’s official - Gordon Brown has announced that the 2010 UK General Election will be held in one month’s time on 6th May 2010.

According to our recent Small Business Britain research, 60% of small business owners feel that their experiences of running their business will influence the way they vote. Given that there are around 4.7 million small businesses in the UK, we are talking about a significant pool of voters. The race is now on for politicians to convince the UK electorate that they are best for the job, and none of the parties can afford to ignore the voice of Small Business Britain.

According to the Small Business Britain research, UK entrepreneurs are calling out for measures such as reducing employers’ national insurance contributions and further deferment of Corporation Tax that will benefit their companies.

Not only do small businesses represent an important segment of UK voters, but they also have a key role to play in our economic recovery. Around 13.7 million people are employed in small companies and they contribute over 50% of the UK’s turnover. It could be significant if the party that comes to power actively listens to and addresses the needs of Small Business Britain.

If you’re a small business owner with ideas on how you’d like the UK political parties to support you, get involved with our discussion at www.smallbusinessbritain.co.uk