Chancellor George Osbourne delivered the Autumn Statement on the 5th December 2013. What does this mean for your business?
In summary, the economy is growing positively, which means raising finance for your business will be cheaper due to lower borrowing costs.
For businesses, some of the main cuts include:
- introducing a cap on the Retail Prices Index (RPI) increase in business rates in England to 2% in 2014-15
- introducing a £1,000 business rates discount to help the high street
- doubling the Small Business Rate Relief for a further 12 months from 1 April 2014 to help 540,000 firms
- making it cheaper for businesses to employ young people by abolishing National Insurance contributions for under-21s earning below £813 per week
- introducing a new tax relief for shale gas and support for the creative industries
Some have criticised Osbourne’s plans, saying that these figures are not matched with the fundamental reforms, which will cause instability for firms, according to the Institute of Fiscal Studies. Businesses are unsure as to how long this tax relief will last for next year.
To find out about how you can apply for bank loans for your business, click here.