The Spring Statement 2018 was held on Tuesday 13th March and a number of important announcements were made that will affect small businesses. This was the first ever Spring Statement following the change in the system that will see the Budget being held in the autumn of each year, and while Chancellor Philip Hammond spoke for less than half an hour, the announcements made were important.
Here are some of the most important announcements that you should be aware of if you run a small business.
Business Rates Revaluation
One of the most important announcements made by the Chancellor was that there will now be a revaluation of Business Rates in 2021, a year earlier than previously planned. In addition, it was confirmed that following this, evaluations will take place every three years. This will be important news for any businesses that have their own premises.
Steps to tackle late payments
One of the big issues that small businesses were hoping would be tackled in the Spring Statement 2018 was the issue of late payments. This currently costs businesses £2.5 billion annually and last year it led to the closure of 50,000 small businesses.
They were not disappointed, with the Chancellor announcing that the culture of late payment would be tackled as one of the measures to increase productivity. This should be a great help for small firms and freelancers who spend far too long chasing invoices.
Extra funding for T levels
The Chancellor also announced new measures that will help boost productivity, with T levels set to receive an extra £500 million in funding. These are new qualifications designed by industry leaders and others.
In addition, £50 million is being given to employers to help build more placements for students and £80 million will go to very small businesses to help cover the costs of taking on apprentices.
Funds allocated for better broadband
While a £190 million fund to improve digital connectivity across the UK had already been announced, the Spring Statement 2018 saw the Chancellor announce the first wave of allocation, with £95 million to be spent in 13 areas of the country. This will be good news for any businesses that still suffer from connectivity issues.
Other announcements in the Spring Statement 2018
As well as the announcements that specifically affect SMEs, other important announcements were made. These included:
- National debt will fall faster than was previously expected
- £1.5 billion is being allocated to prepare for Brexit
- GDP growth will be down in 2021/22
- Single-use plastics could get a new tax to help reduce pollution
- The government will consult on multinationals and VAT to ensure large companies offering digital services pay their fair share
Keeping you up to date with the latest developments
It’s always important to follow the latest economic announcements so you can prepare for any changes that might affect your business, and the Spring Statement 2018 contained a lot of announcements that might have an impact on your business in the coming years.
Of course, we keep a close eye on all of the latest developments, both those announced in the Spring Statement and those that you might have missed, to ensure our clients are always kept fully up to date.