James Anderson.
Keep supporting the SMEs: The message from FSB development manager James Anderson as small business owners digest the Autumn Statement and prepare for the festive season.
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IT IS fair to say that Chancellor of the Exchequer Rachel Reeves’ Autumn Statement has been received pretty badly by the local small business community.
Of course, there is a broad understanding that our public services are in need of investment and money has to be found to support this. But the two main takeaways that we are hearing from small businesses are that it is going to be harder to employ people and that costs are going to rise for consumers because of these additional employment costs.
At the Federation of Small Businesses, our main ask to government in advance of the Budget was for an increase in Employment Allowance which would shield many of our smaller businesses from any possible National Insurance hikes and we were pleased that the government listened to us and doubled the allowance to protect around one million SMEs from increases.
However, we have warned that SME employers with more employees will struggle with the rise in employment costs, including through the changes to employer National Insurance Contributions and the large additional costs that businesses will incur due to government’s raft of new employment law plans.
The FSB has been very clear in our warning of the difficulty SMEs will be confronted with in meeting all of these changes at once – and the potential impact on jobs, wages and prices.
We had been very concerned that businesses in the retail, leisure and hospitality sectors would struggle when their special relief ended in April and we were relieved to see in the budget that it would be retained, even if it is at a much reduced rate.
We were also encouraged to see the freezing of the small business rate multiplier which we know is a lifeline for small businesses, protecting them from an inflationary hike in business rates.
As ever, it feels like a hard time for people to be running their own businesses but, through our networking events that we run for small businesses across the country, we continually hear of good news stories where businesses have found a niche and are thriving.
The most financially successful businesses provide something that people either need or want, be that service or a product. But for many small businesses, profit is not the king and they are just trying to either make a small living for themselves or provide some employment for others.
Either way, small businesses continue to be the lifeblood of our economy and communities and it is on us, the consumers, to keep supporting them. So, in the lead-up to Christmas, please think locally.
How can you support the economy that supports your community?
James Anderson is development manager for the Thames Valley region of the Federation of Small Businesses.
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