October Budget is a start - now keep listening

If one thing came out of Philip Hammond’s October Budget speech it was that finally it seems the government of the day is finally listening to our small businesses.

By Paul Spencer, director, Haworths

The good news is that several measures announced by the Chancellor were specifically aimed at helping the SME community. And about time, some may say!

Particularly welcome was the £900m of business rates support for the embattled high street, a vital boost for the small retailers who are really up against it.

It is a move that on average will help these businesses to the tune of almost £2,000 each.

The freeze on the current VAT threshold for two years will keep many businesses out of a system that can bring its own headaches and challenges for smaller firms already struggling with a mountain of other administrative tasks.

Another positive move was the protection of the Employment Allowance, which will now be focused on small employers, helping them knock £3,000 off their National Insurance Bill.

Add to that changes to the Apprenticeship Levy and the continued freeze on fuel duty and it was a Budget that had much to commend it to small businesses here in Lancashire.

Equally importantly, as the Federation of Small Business was quick to point out, it marked a significant change of tone towards helping SMEs, who are the backbone of the economy.

That recognition of the role they play as wealth and job creators is welcome.

But it needs to continue. A one-off ‘giveaway’ Budget won’t cut it. On-going and developing support for small businesses in areas such as training and investment in new technologies is vital if the nation is to tackle the productivity challenge it faces.