Posted: Tuesday, 5 April 2011 @ 09:35
It wasn’t an exciting budget, and it did contain some help for SMEs, but did it go far enough? The government is beginning to realise that sustained economic growth will need to come from the SME sector but should it do more to boost this vital sector?
The focus for the economy as a whole remains the reduction of the public sector deficit. This is essential to create the right economic environment. It should create more market stability and keep interest rates as low as possible as well as rebalance the economy to the sectors that create real wealth.
As far as business is concerned, the government appears to have heard the clamour for less regulation and has responded with a three-year moratorium on new domestic regulation for micro businesses. I would like to see a concerted effort to reduce regulation, rather than just freeze it, and somehow an effort to tackle the flood of regulation coming from Europe. Nevertheless, this will be a great help but should of course cover all small business and not just micro ones.
The measures to reduce fuel duty are helpful but don’t go far enough. If we want to build up the manufacturing sector, the government must realise that goods need to be moved from one place to another and that transportation costs are a real burden on these business.
Taxes on SMEs should be reduced as they are effectively a tax on growth and jobs. Therefore, the extension of the Small Business Rate Relief and the reduction in Corporation Tax is welcomed.
Perhaps the Federation of Small Business is correct when they said that the budget did not harm but won’t boost small business. In my view, small business will boost itself as long as the government works hard to create and maintain a business-friendly environment. I’m just not sure it has gone far enough.
Blog by Gary Cousins
Gary has been providing legal advice to shareholders, directors and business owners for over 25 years. Specialising in dispute resolution Gary is based in Birmingham with clients throughout the UK and overseas. View profile
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