A Commercial Perspective on the Election
18 May 2015 by Ashton Carter
What does the Election Result mean for Small Businesses?
After the Conservative party somewhat surprisingly obtained a majority in the election this month, many people are left wondering what this means for the future of the country. In particular, many were pondering the fate of the substantive number of small businesses currently in existence, that already face considerable difficulties without the additional problems that a new Government can bring. However, according to the Tories’ small business manifesto, there should be nothing to fear for such local businesses.
One of the first points raised in the manifesto is the promise to cut £10bn worth of ‘red tape’ through their Red Tape Challenge and one-in-two-out rule. The Red Tape challenge aims to either remove or simplify 3000 pieces of regulation in order to reduce burdensome restrictions and encourage business and economic growth. The Challenge allows members of the public to voice their views on current regulations that affect them in the day-to-day running of their business.
The Conservatives have also made the bold statement that they will treble the number of start up loans to a total of up to 75,000, during the course of their run in Parliament. Business rates will also be extensively reviewed by the end of the year to ensure that they “properly reflect the structure of our modern economy.”
Infrastructure is also to set to benefit from a £100bn investment, with £38bn of this exclusively to be spent on the railway network. Not only will this money will be spent on implementing the new High Speed and Crossrail services but it will also go towards improving mobile phone signal on trains and installing new Wi-Fi equipment. Mobile phone coverage outside the rail networks is also set to be boosted as it is the Tories’ intention to ensure that 90% of the UK will have voice and SMS coverage by 2017.
The new Government is also keen to lower the levels of tax payable by businesses. One way they are aiming to achieve this is by keeping the current Employment Allowance, which reduces the level of National Insurance Contributions payable by employers. Furthermore, the Annual Investment Allowance is set to be raised which will reduce capital gains tax liability and eases long-term investment.
If you are still concerned about the future of your business despite these assurances or would appreciate advice upon the implications of these pledges, feel free to contact our Corporate and Commercial Department on 01245 584515 or [email protected]