Budget 2016: What SMEs need to know

Budget 2016: What SMEs need to know


Ed Relf, CEO, Laundrapp says: 

“As the clouds are gathering over the global economy, the UK should be looking to entrepreneurs for a sunnier outlook. Promised tax cuts and abolished business rates will go a long way to help entrepreneurs grow the on-demand ecosystem, offer more jobs, drive innovation and help Britain “put stability first” and remain one of the world’s fastest growing economies.

“Projects to support innovation across Britain, not just in London, are essential. If the Northern Powerhouse is to become a reality, start-ups must receive assistance to establish local innovation zones. Young people must also be encouraged to consider careers in start-ups. If this Budget is to truly put the next generation first, encouraging entrepreneurialism and creativity is key.

“The UK is open for business and start-ups have big ambitions at home and abroad. Time will tell if these tax cuts go far enough to facilitate our “digital age”.


1:44pm: Corbyn calls the tax cuts announced 'mates rates' deals. 

"The budget is more for hedge fund managers than small businesses."

Osborne's export prediction will be missed by a country mile. 

97% of the people leading the Northern Powerhouse have been outsourced...to London.

1:41pm: Labour leader Jeremy Corbyn steps up to the dispatch box

"It is a Budget based on sand and failure"

This has budget that has unfairness at its core.

13:40pm: As the Chancellor closes his Budget2016, he warns against global storm clouds. 

13:36pm: Chancellor increases the high rate of tax from £40k to £45k - taking out the people who should have never been in the high tax rate in the first place

13:35pm: I am raising the tax free personal allowance to £11.5k

13:34pm: Introduce the Lifetime ISA - From April 2017 you can save £4k a year, for every £4, the government will give you £1.

"You don't to choose between saving for a house or a salary"

Increase ISA limit from £15k to £20k

13:31pm: Pensions - We are going to keep the lump sum and abolish the Liberal Democrats

13:30pm: Capital gains tax is the highest among the world. Today I am cutting it from 28% to 20%.

From 2018 absolish class 2 NI contributions altogether for the 3m strong army of the self employed.

1:07pm: Stamp duty cut for business property deal.

1:04pm: From April 2017, 600,000 SMEs will pay no business rates at all by raising the threshold from £6k to £15k – a saving of £6k for every SME annually forever.

1:02pm: We are taking action against e-commerce retailers that sell overseas and don't pay VAT.

Tax free allowances for trading and property income for digital providers, half a million people will benefit. 

1:01pm We are going to reduce corporation tax even further - it is one of the most distortive taxes there is.

"By April 2017, corporation tax will reduce to 17%. Britain is blazing a trail."

1pm: In cutting coporation tax we have raised more money for public services. We will work on a low tax regime to attract multi national companies to ensure they pay tax here.

There will be a level playing field tilted towards SMEs.

12:55pm: The Chancellor says it will raise £12bn by closing tax loopholes. 

Inflation is down 0.3% to 0.7%

SME ed: There is no doubt that stability and long-term planning is the foundation of this Budget announcement

12:50pm: This is a Budget for the next generation.

12:48pm 150,000 more jobs expected than predicted in November 2015. 

12:43pm: The UK economy is expected to grow by:

2.2% in 2017;

and 2.1% in each of the three years after that.

Britain is expected to grow faster this year than any other advanced economy in the world... BUT..this prediction is based on the UK remaining in the Europe.

The OBR is staying out of the politics around the EU referendum and has not looked at the costs and benefits of staying or leaving.

"A vote to leave could usher in uncertainty and negative consequences in consumer confidence and increase volatility in financial markets," says the OBR.

12:38pm: OBR has pointed to a downturn in global trade with a low productivity growth globally. Osborne backs the OBR's November revision of low productivity in the UK.

"We fit the plans to fit the figures"

12:35pm: Chancellor George Osborne starts by saying the British economy is resilient but productivity growth is low, the economic outlook is bleak and there is a global cocktail of risk.

"We need to act now so we don't pay later. We are not powerless but we have to choose stability. We need to lead the world to long-term solutions to long-term problems. That is what we are saying today." 

Stay tuned for all the highlights from the Budget 2016 LIVE...