The budget: what is means to your small business…

The budget has been unleashed upon the country and not many people are happy - the outlook is grim as Britain is expected to be paying off debt for plenty of years to come.  But what does it all mean for small businesses?

The country will be borrowing a staggering £175 billion for the year 2009 and a further £173 billion for the year 2010 - furthermore the economy is set to shrink by 3.5 per cent through 2009 alone.

The specifics…

But what specifically will be affecting small businesses throughout the country?

•    A new green direction - £750 million fund for green, digital and energy areas.

•    Statutory redundancy pay increased from £350 to £380

•    Fuel duty increase of 2p

•    Capital allowance rates double from 20 per cent to a massive 40 per cent

•    Corporation tax rates stay the same rising from 20 per cent to 21 per cent

•    Top tax rate increased to 50 per cent

A disappointment…

The budget has been labelled a disappointment by the Forum of Private Business as they claim it still fails to address the even increasing problems of small business’ access to finance.

The FPB are also attacking the budget as they feel that it also fails to reduce costs for small businesses as well as give the economy a boost.

The national chairman for the FPB, Noel Guilford, has slammed the budget for being too weak when the small businesses in the country needed a strong new direction for the recovery of the industry.

“We are experiencing the worst economic conditions that most business owners have ever seen. We needed a bold strategy for business recovery, which the chancellor has failed to deliver at all levels,” said Guilford.

“The chancellor has missed a vital opportunity to produce a Budget for business survival and economic growth. We called for a real and sustained support strategy, acting as a catalyst for broader economic recovery, but instead we got a Budget that appears to be focused on the next general election,” continued Guilford.

The FSB and the FPB disappointed by the budget…

Guilford’s feelings have been felt across the industry as the chairman for the Federation of Small Businesses, John Wright, has also highlighted how the budget has largely overlooked small businesses.

“In what has been the most crucial budget in decades, the FSB is disappointed that small businesses have been largely ignored,” said Wright.

The FPB has condemned the budget for neglecting proposed measures by the forum such as lowering corporation tax and keeping fuel tax and minimum wages from rising.

The FPB have also noted that the budget fails to allow enough businesses to qualify for protection under the £5 billion credit insurance scheme which has recently been launched temporarily.

Are you happy with the budget?

Clearly the likes of the FSB and the FPB aren’t happy about the new budget…are you as unhappy with the budget as them or do you have your own views on the move?  Leave us a comment and let us know…

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