How did the autumn budget help businesses?
By Mr Bankruptcy
23rd November 2021
Now that we’ve had time to let the dust settle on the Chancellor’s autumn budget and digested the vast amount of press coverage, have you taken time to reflect on how the changes will impact your future financial prospects? Below I’ve done my best to distil the most significant announcements for business.
Key announcements for business
With an aim of supporting retail, hospitality, and the leisure sectors, which experienced particularly challenge times during lockdown, changes to business rates were announced, including:
- A 50% discount on business rates for retail, hospitality, and leisure businesses in England, up to a maximum £110,000, for 2022-2023.
- A new business rate relief will support investment in qualifying improvements to property, so no business will face higher business rate bills for 12 months after making such improvements.
- A freeze on the business rate multiplier and a move to revaluate business rates every three years.
- The number of main alcohol duty rates is reducing to six from fifteen, with stronger drinks attracting a higher rate. Draught beer and cider will actually see a cut in their duty. This will be relief for smaller producers, including cider and sparkling wine makers and community pubs.
Wider changes affecting businesses include:
- Fuel duty frozen for another year.
- A 6-month extension to the Recovery Loan Scheme, to 30th June 2022.
- An angel investor scheme outside London to connect investors with entrepreneurs in order to get new businesses up and running.
- An extension of the £1m allowance for annual investment until March 2023, supporting businesses investing in plant and machinery.
- Research and Development tax relief, to be made available for a wider range of business costs, including cloud computing and data.
These changes will be phased in over the next couple of years, so they won’t present a quick solution for businesses struggling right now, but they do lay the path ahead so business can at least understand some of the costs they will face.
During challenging times, it can be difficult to take time out from running your business to reflect meaningfully on broader financial initiatives, but the budget is a good reminder that managing debt is also about cutting costs.
Understanding the impact of the budget on your business and which new financial initiatives can help build for the future plays an essential role in developing a strong financial basis for moving forward.
James Rosa Associates
James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors who face unmanageable debt or who are involved in civil or commercial disputes. Our services include:
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