Chancellor George Osbourne made his much anticipated Autumn Statement this week. Enterprise zones, an extension of rates relief for the UK’s smallest firms and new digital tax forms all featured. Here’s our summary of the main points affecting small and medium sized businesses.
The Economy is strong 2.4% one of the strongest for a developed country.
Devolution of Business Rates: This gives local councils the ability to reduce or increase rates, hopefully to encourage businesses into struggling areas.
26 new Enterprise zones: Based on success of producing 19,000 “new jobs” from the existing 24 they have decided to double the size of the scheme.
Apprentice Levy: Businesses with a turnover of £3million+ will be required to pay 0.5% levy on the companies to payroll to fund £3bn investment in apprenticeship schemes.
R&D Grants change to loans: The £165m innovate UK grants will be changed to loans following Frances successful theme.
Investment in infrastructure: 51% increase in investment this includes HS2 and other regional train lines improve transport links and hopefully spread growth more evenly across the country.
400,000 new homes: £2 Billion will spent to support the development of 400,000 new homes which will help numerous traders and suppliers connected to the construction industry.
Buy to Let: This is the hardest hit they required to pay 3% on top of the standard rate. See the figures below. This will potentially slow the house price growth with less people deciding this is a lucrative investment opportunity.