Yesterday saw the first statement given by the new Chancellor of the Exchequer, Philip Hammond. This is also the last ever Autumn statement, from 2017 there will be a statement in the spring.
For businesses, the Autumn statement is significant as it presents important information to both small and large companies, vital for the next 12 months. If you missed the Autumn statement yesterday we’ve listed some points you need to know as a UK business going into the new year.
Following the Brexit vote, economic growth in the UK is forecast to be lower than predicted. The growth figure is estimated to be 1.4% in 2017, reduced from a predicted figure of 2.2%.
Investment in Innovation
The government has pledged to invest £23 bn into a brand new ‘Innovation and Investment’ fund over the next 5 years.
Improvements in Connectivity
The government has pledged to invest £1.1 bn into the improvement of transport networks, including electrification of the railways.
Great news for businesses looking to get the fastest broadband available – fibre. There will be 100% rebate for businesses looking to install super fast broadband in their offices.
The UK will increase the amount of export finance to make it easier and more cost effective for British businesses to export their goods.
Small Business Review
A review led by the treasury will inspect the barriers currently holding start-up businesses back as well as an extra £400m to be pumped into Venture Capital funding from the British Business Bank.
Small Rural Businesses
Small businesses located in rural areas will benefit from the Rural Rate Relief scheme, which will increase by 100%, saving small businesses in countryside locations significant cash.
The National Living Wage Increases
The National Living Wage will increase from £7.20 to £7.50 in April 2017, meaning that businesses will need to budget for this in their cash flow projections for 2017.
If you’re worried about how the key points from the Autumn budget will affect your business, then contact us to see how we can help you improve any aspect of your business finances.