The Chancellor’s Autumn Statement provided a mixed bag for SMEs. Whilst there were some significant announcements on business rates and taxes that will be broadly welcomed, there were some missing pieces of the puzzle.
One of the most acute challenges facing SMEs at the moment is the spiralling cost of energy and this Statement failed to provide any assurances about a price cap. That, ultimately, will be a disappointment for many small businesses who were looking for some clarity about costs leading into the New Year.
Plans to make permanent the ‘full expensing’ tax break will be of significant benefit to those in the manufacturing sector, who spend large sums on machinery and IT infrastructure.
Furthermore, a freeze of the small business multiplier for a further 12 months and an extension of the 75% discount on rates up to £110,000 for retail, hospitality and leisure businesses will come as a relief to many.