The massive news of the week has for sure been the budget. We’ve been glued to our screens to work out what we are able to expect from the govt. to assist in giving our economy the boost it needs and the business benefits on offer.
The extensions made to tax relief in 2012 showed the govt was specializing in the proper areas but for the UK’s start-up scene it just wasn’t enough. We don’t have a big market within the UK so it’s essential that we profit from both the united kingdom market, and the worldwide market. For starters we must always concentrate on buying British! Secondly, as a nation of tech innovators we want the govt to step in and do more in helping our start-ups engage forcefully at the world stage. That is something we’re failing at promptly. We’ve some fantastic technology businesses here, so it’s unlikely to be difficult for them to locate success stories to champion.
In this week’s budget i wished to determine more action higher up the food chain, when it came to investing in UK businesses. It was both excellent news and bad news. The bad news is we’re still facing spending cuts and tax rises. The excellent news is that Osbourne plans to make Britain where to boost money and put money into business.
Infrastructure spending is to be increased by £3bn a year from 2015 and company tax is to be reduced to 21% starting next year. As Osbourne says we can’t stand still during this global race. But whilst reducing tax will entice international businesses to establish the united kingdom, what in regards to the little guy? The united kingdom start-ups and entrepreneurs? plenty of businesse are having to examine alternative investment markets to grow and here’s adding one other barrier to an already difficult process. Starting off your individual business, irrespective of how great your idea, is tough work. So what’s the Government doing to make it easier?
Well the Business Bank is to present £75 million of recent funding for venture capital to support UK start-ups. It was also hinted that the Funding For Lending scheme may be extended, enabling more start-ups to get the loans they want. Add to this the employment allowance, which in accordance with Osbourne means some 450,000 small businesses can pay no jobs tax in any respect, and the united kingdom should provide a far better platform for brand new British start-ups to take off. This is often providing all of it involves fruition needless to say.
The Government also promised to extend by fivefold the cost of presidency procurement budgets spent in the course of the Small Business Research Initiative. This can give more SMEs the chance to secure government contracts. It’s a shame there wasn’t an analogous pledge for the G-Cloud. But not surprising given the technology sector wasn’t really mentioned in any respect within the budget.
Given the net sector accounts for 8% of the economy, it’s probably not a sector they could afford to disregard. It was just a couple of months ago that the govt. pledged another £50 million of funding to Silicon Roundabout in its mission to make ‘Tech City’ one of many biggest technology centres on the earth. So it kind of feels odd it slipped under the budget’s radar.
Finally, a captivating idea was floated for a single competitive pot of funding for local enterprises. It really is exactly what we want more of. We’d like firm legislation in place that provides the united kingdom entrepreneur more value within the UK economy than global businesses.