The Spring Budget 2023, announced by PM Rishi Sunak, has been met with mixed reactions from the small business community in the UK. While the budget includes measures aimed at supporting businesses in the wake of the pandemic, there are concerns that small businesses have been left short-changed. Small businesses are the backbone of the UK economy, accounting for over 99% of businesses and employing over 16 million people.
The pandemic has hit them hard, with many struggling to survive. The budget was expected to provide much-needed support to small businesses, but there are concerns that it may not have gone far enough. The Federation of Small Businesses has criticised the budget, stating that it has failed to provide enough support for small businesses.
The Spring Budget 2023 announced by PM Rishi Sunak had several measures to support UK businesses. Some of the key takeaways that may impact small businesses are:
While the budget has announced measures to support businesses, there are concerns that more than these measures may be needed to support small businesses.
Several small business owners and industry experts have raised concerns that the budget needs to do more to support small businesses. Let’s take a look at some of the concerns raised:
Small businesses on the high street have been hit hard by the pandemic, with many struggling to stay afloat. There were hopes that the budget would provide more support to these businesses, but it has been criticised for failing to do enough. The Federation of Small Businesses (FSB) has raised concerns that the budget needs to be addressed to the needs of high street businesses.
Start-ups have also been hit hard by the pandemic, with much needing help to secure funding. While the budget has announced measures to support businesses with R&D tax credits, there are concerns that more is required to support start-ups.
The increase in corporation tax may impact small businesses that fall within the bracket of paying corporation tax. While the government has announced that companies with profits of less than £50,000 will be taxed at the current rate of 19%, there are concerns that this may not be enough to support small businesses.
The budget has been criticised for not providing enough support for the self-employed. While the furlough scheme has been extended, there are concerns that self-employed individuals may need more help.
The budget has announced funding for green initiatives. Still, there are concerns that more than this may not be needed to support small businesses looking to transition to a greener economy.
Small businesses that feel they have been left short-changed by the Spring Budget 2023 can take proactive steps to mitigate its impact. Here are some suggestions:
Small business owners can seek advice from financial and business advisors to understand the impact of the budget on their business and what steps they can take to mitigate it. Advisors can also guide alternative funding sources and potential cost savings.
Small businesses that are struggling to secure funding may need to explore alternative funding sources such as crowdfunding, grants, and loans. They can also consider negotiating payment terms with suppliers and customers.
The increase in R&D tax credits for SMEs allows small businesses to invest in innovation and take advantage of the tax credits. Small businesses can consider exploring new products, services or operating methods to differentiate themselves from competitors.
The budget has funded green initiatives, including the Future Fund Green. Small businesses can look for ways to incorporate green initiatives into their operations to take advantage of the funding announced by the budget.
Outsourcing certain functions, such as finance and accounting, can help small businesses reduce costs and increase efficiency. This can also free up time for small business owners to focus on other business areas.
Thus, small businesses should take a proactive approach to the Spring Budget 2023 and explore opportunities presented to them. They can also look for ways to reduce costs, improve efficiency and differentiate themselves from competitors. Seeking professional advice and being open to new ideas can help small businesses navigate these uncertain times.
The Spring Budget 2023 has announced measures to support businesses in the UK, but there are concerns that it may have left small businesses short-changed. Small businesses are the backbone of the UK economy, and assessing whether the budget has adequately addressed their needs is important.
While there are concerns, small business owners can take steps to mitigate the budget’s impact on their business. Some steps small businesses can take are seeking advice, exploring alternative funding sources, investing in innovation, incorporating green initiatives, and outsourcing certain functions. Small businesses need to be proactive and take advantage of the opportunities the budget provides while reducing its potential impact.
Get the best advice on tax savings, accounting services, payroll, self assessment, VAT and more, whether you want to call us directly, request a call back or chat online with our experts, rest assured that we will always give you the best advice.If you have any questions, or would like to speak to us in person, please do get in touch. We’re here to help.
DNS House, 382 Kenton Road,
Harrow, Middlesex, HA3 8DP
“I recently started my own company and in need of a good accountant. With my friends reference, I started dns accountancy services and I am a quite satisfied with their service. My account manager Sneha Gurudutta was always responsive and guided me a lot especially during my company early days. Keep u the good work.”
“I have been dns for the last 3 months and I am very happy with the service. My account manager Sneha Gurudutta guided me and helped me with all the major/minor steps with the account setup. The weekend support they provide is really helpful. I would definitely recommend dns to all my friends.”
“Unfortunately my son passed away without leaving any contact name of his accountant. I was able to make contact with the firm through HMRC. The staff were very prompt, caring and supportive in settling his income tax account. I was extremely impressed with the efficient caring and supportive service received from all of dns staff.”
“Been with dns Accountants for more than a year I would highly recommened their services. My account manager Sneha has been very helpful and helped with accounts and queries swiftly always! Having a good accountant means you can fully focus on your business, not worry about accounts and tax matters. Thank you dns :-)”
“I have been extremely satisfied with the service I have been receiving close to past 1 year. Very professional, transparent and helpful. Special mention of my Account Manager Minakshi Arora who made my transition very smooth and always ready to go that extra mile to support and make customer happy. Definitely recommended.”
“I've recently set up a Ltd. Company and signed up with dns for my accounting services. I've found it very good value for money and hugely helpful in terms of advice and guidance. I have a named Account Manager, Sneha Gurudutta, who keeps in contact with me and offers advice on line and on the phone... I'm really pleased with the service.”