Small businesses are the backbone of our economy – creating local jobs and opportunities for people but also contributing to the growth of our economy. That is why, as Conservatives, we are committed to helping small businesses, by implementing our £14 billion business rates package, raising employment allowances for businesses, and making it easier for new entrepreneurs and businesses to access the funding they need.
Neil welcomes the steps the Government have taken to encourage people to start a business here in the UK by:
• Providing a £14 billion business rates package to help high streets, supporting small businesses with day to day costs. This support includes a freeze to the Business Rates multiplier, a Transitional Relief Scheme, a Supporting Small Businesses Scheme, and a 75 per cent retail, hospitality and leisure relief, worth up to £110,000 per business – meaning small businesses are protected from huge costs.
• Raising the employment allowance to £5,000, delivering a £1,000 tax cut for small businesses. The Employment Allowance cuts employers’ national insurance tax bills by increasing the employment allowance even further to £5,000 from April – delivering a new £1,000 tax cut for half a million small businesses.
• Moving the threshold for SMEs from 250 to 500 employees, cutting the costs of regulation for nearly 40,000 businesses. The Government have moved the threshold for SMEs from 250 employees to 500, meaning 40,000 businesses now qualify as an SME – cutting the costs by reducing the regulations they are subject to, saving them time and resources.
• Expanding our Start Up Loan scheme, providing over 30,000 new loans for small businesses, helping us to grow the economy. This has made more than 33,000 more loans of up to £25,000 available to businesses that have been trading for up to three years, up from two years, with new ‘second loans’ available for businesses that have been trading for up to five years.
• Shielding small businesses from paying Corporation Tax, allowing them to invest in their priorities. Small businesses will be protected from increases to Corporation Tax through the Small Profits Rate and Employment Allowance and 40 per cent of all businesses will be unaffected by the freeze in National Insurance thresholds.33
• Supporting business with the cost of their energy bills, allowing them to focus on the costs of running their business. The Government's Energy Bills Relief Scheme is protecting businesses right now. By January 2023, the Conservatives will bring forward proposals to support energy bills beyond April 2023. Future support will be focused where it is needed most – for energy intensive industries, small businesses, and the hospitality sector.
So, to mark the 10th anniversary of Small Business Saturday, get behind your local businesses and invest in Britain.