What will the new UK government do for small business?

Last updated: 13 June 2023 Views: 3947
What will the new UK government do for small business?

After the post-election fuss settles down, many entrepreneurs will now be wondering what exactly the new all-Conservative UK government has in store for small business owners.

During the launch of his small business manifesto last month, Prime Minister David Cameron gave a speech praising the small business owner, saying: “At the heart of the economy is small business and enterprise and the people who take those risks to get a business up and running."

But if David Cameron and his freshly-formed cabinet are to stay true to their word and their manifesto, what policies can business owners expect to be rolled out over the next four years? Here’s a comprehensive breakdown of the promises the Conservatives will need to keep, illustrated with David Cameron’s own words, just in case he needs to be reminded of them at a later date.

Taxes

The Conservatives have promised to give entrepreneurs the most competitive taxes of any major economy, aiming to keep the lowest business tax rate anywhere in the G20. They have also vowed to continue to help smaller businesses take on new workers through the Employment Allowance, which frees businesses from the first £2,000 of employers’ National Insurance Contributions so that a third of employers pay no jobs tax.

David Cameron said: “We know when we save you tax, you put that money into investment, into jobs, into progress, into the growth we need in our country.”

Rates & Regulations

During the election campaign the Conservatives pledged to provide extra support for high street shops by increasing the business rates retail discount to £1,500. They also promised to conduct a major review into business rates by the end of 2015 to ensure that clearer billing, better information sharing and a more efficient appeal system is introduced.

Another policy put forward was the strengthening of the Prompt Payment Code (ensuring that all major government suppliers sign up) and the establishment of a new Small Business Conciliation service to mediate in disputes, especially over late payment.

David Cameron said: “We’re setting a new target of £10bn less regulation in the next parliament…..we’re going to review rates and help many more businesses on our high street that are striving and grafting and trying to do their best.”

Startups & Smallbiz

To try and capitalise on the success of London’s startup community, the Conservatives are aiming to help businesses create two million new jobs by trebling the Start Up Loans programme, giving 75,000 entrepreneurs the chance to borrow money to set up their own business. Small businesses are also going to be given a leg up with the Help to Grow plan, giving them loans to help them expand to the next level.

Related article: Join the UK Startup Scene

David Cameron said: “I want this to be the start-up nation in Europe and one of the great start-up nations of the world…..Our ambition is to be the best country in Europe to start to grow a business. And I want to be in the top 5 anywhere in the world. That is the ambition I promise to you.”

Let’s hope for all small businesses out there, the Conservatives keep their promises…..

For all the information on how to start your business in the UK including how to open a UK bank account, or to find a UK accountant and tax specialist contact us through our contact page.

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