The UK’s Chancellor of the Exchequer Rishi Sunak delivered his first ever budget to the House of Commons On 11 March 2020.
Described as a budget that delivers on the Conservative party’s “promises to the British people” by Mr Sunak’s, this much anticipated, post-Brexit announcement, focussed on a number of areas.
If you are unsure what the latest UK Budget means for SMEs, we explore the number of measures that have been put in place to directly support small businesses.
The power of businesses and supporting SMEs
Small businesses make up 98% of the UK’s business population.
Acknowledging this, Mr Sunak spoke passionately during the budget announcement about the importance of supporting SMEs and the impact that they have on Britains economy.
Before the budget was announced the Federation of Small Businesses (FSB) has called for a number of measures from the government, their main concerns being an immediate statutory sick pay rebate for small businesses struggling with the cost of self-isolating employees (due to the Coronavirus pandemic) as well as a number of tax changes, including a review of the business rates system.
Speaking to parliament and public he said that the Conservative party has a plan for prosperity that will “unleash the power of business.” The government plans to support small businesses that want to ”start up, grow and export.”
The main figures around SME investment are listed below.
- The Government has introduced a £3,000 cash grant available to 700,000 of the smallest businesses, paid by local authorities, which is worth a total of £2 billion.
- Abolishing business rates altogether for this year for small firms in England whose rateable values are below £51,000, a tax cut worth a total of £1 billion.
- Statutory sick pay for businesses with less than 250 employees (SMEs) will be refunded by the Government in full for up to 14 days per employee.
- The launch of a new Coronavirus Business Interruption Loan Scheme that will see banks offer loans of up to £1.2 million to support SMEs.
There were also a number of spending plans on broadband, roads, housing and rail announced during the Mr Sunak’s speech which, giving SME suppliers within construction and infrastructure a dose of prosperity as we move into the second quarter of the year.
Small business? Win big
On average the UK public sector spends around £284 billion on goods and services in the process we know as procurement. In recent years has encouraged small businesses to seek opportunities, as aims to spend £1 in every £3 with SMEs, directly or through the supply chain, by 2022.
At Supply2Gov we help new and existing suppliers find contracts that are right for their business, to help them grow in this lucrative market.
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