Home
Distressed Businesses
  • All Distressed Businessess
  • Administrations
  • Liquidations
  • Winding Up
  • Insolvency Advice  New
Buy a Business
  • All Businesses for Sale
  • Find a Business for Sale
  • Raising Business Finance
  • Buyer Acquisition Service   New
  • Escrow Service   New
Sell a Business
  • Sell Your Business
  • List your Business
  • Seller Accounts
  • Need Help Selling?
  • Help With Finance New
  • Corporate Services  New
  • Business Valuation
  • Business Wanted Adverts
Insights & News
  • View All News
  • View All Insights
  • Exclusive Insights New
  • Video Insights
Lens
  • Search all UK Companies  New
Log in
Join Now

Home / News / Budget 2017: What it means for businesses

Budget 2017: What it means for businesses

Thu, 09 Mar 2017 | BUSINESS NEWS

The Chancellor has just delivered the government’s last ever spring Budget. “My ambition is for the UK to be the best place in the world to start and grow a business,” Philip Hammond said.

Announcing a range of policies on business rates, tax reform for the self-employed and investment in IT infrastructure, there was plenty in the Budget for companies. Here we round everything up and give you the reaction from business groups.

The state of the economy
The UK was the second-fastest growing economy in the G7 in 2016.
Economic growth for this year upgraded from 1.4 per cent to two per cent.
Employment at a record high of 31.8 million people.

Business rates
A rise in business rates comes into effect in April with many firms warning the spike could put them out of business.
In response the government has announced extra help for small businesses and pubs.
90 per cent of pubs in England will get a £1,000 discount.
Small businesses coming out of rate relief will have increases capped at £50 a month.
Councils will also get a £300 million hardship fund to help “individual hard cases” in their local areas.

Digital tax
Small businesses with turnover below the VAT threshold will have an extra year to prepare for Making Tax Digital - the digitisation of the tax reporting system which will require firms to use online software to keep tax records and update HMRC quarterly.

Raising National Insurance for the self-employed - later dropped
The Budget announcement that has proved the most controversial.
Class 4 National Insurance contributions for the self-employed will rise from nine per cent to 10 per cent in April 2018, then to 11 per cent in 2019.
This means 2.5 million self-employed workers will pay an extra £240 a year.

On March 15 the government rowed back on the plans with Mr Hammond saying the government would not proceed with the increases. He had been heavily criticised for breaking a 2015 manifesto pledge.

Tax-free dividend
Changes to the total tax paid by an employed worker and by one who sets up their own company.
The tax-free dividend allowance for directors and shareholders will drop from £5,000 to £2,000 from April 2018.

Investment in 5G
New strategy to make the UK a “world leader” in 5G technology.
£16 million for a national 5G Innovation Network to trial new 5G technology.
£200 million for local projects to build “fast and reliable” full-fibre broadband networks.

Reaction
Business rates
“The Chancellor’s recognition of the challenges posed by business rates through increased transitional relief for smaller businesses, is welcome.

“But there is no immediate prospect of more frequent valuations, or broader relief from rising business rates in a world of higher inflation, which businesses were looking for.

“Over the longer term, firms want to see a wider reform of business rates as part of the Chancellor’s efforts to create a more modern tax system.”

Carolyn Fairbairn, director-general of the Confederation of British Industry.

Self-employment
“This measure is a tax grab on middle income self-employed people, who are just about managing. Class 4 National Insurance contributions will apply from about £8,000 to £45,000 in profits. Millions of self-employed will now face this tax hike, including plumbers, hairdressers, designers, musicians and many others in all our local communities.”

Mike Cherry, national chairman of the Federation of Small Businesses.

Tax-free dividend
“The 60% cut in tax free dividend allowance will hurt those businesses already dealing with increases to the taxation of dividends and uncertainty around IR35.

“From April 2018, the tax free dividend allowance is being cut from £5,000 to £2,000, in the Chancellor’s words, “to reduce the tax differential between the self-employed and employed”. This allowance was a measure only introduced last year, and the constant tinkering will damage business confidence.”

Jordan Marshall, policy development manager at IPSE.

5G tech
“The £16 million for a 5G hub and £200 million for local authorities to stimulate private investment in fibre networks for world class digital connectivity should be applauded.”

Charlotte Holloway, policy director at techUK.


Share this article



Latest Businesses for Sale

Provider Of Experiential Leadership & Development Training
UK Wide

The company has designed and developed a wide range of specialist training programmes, which can be delivered on-site or online. Operates from several strategically located, purpose-built training facilities, designed to support memorable learning ex...

Asking Price: Offers Invited
Turnover: £1,065,000

LEASEHOLD


E-Commerce Retailer Of Home Storage Products
UK Wide

Long established and highly profitable on-line retailer of premium quality rattan/wicker home furniture/storage products. Established as one of the country's leading suppliers of a large range of rattan products for the modern home. The products are...

Asking Price: £350,000
Turnover: £700,000

RELOCATABLE


Online Retailer Specialising In Garden Machinery
UK Wide, North West

The company specialises in domestic and industrial garden machinery, cleaning equipment, spares and parts. Products include, pressure washers, vacuum cleaners, hedge trimmers, strimmers and heaters.

Asking Price: Offers Invited
Turnover: £1,900,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
25
 
Feb
 

Fairstone secures further backing from PE firm TA Associates | BUSINESS NEWS

Acquisitive wealth management firm Fairstone Financial Manag...

 
24
 
Feb
 

Nestlé acquires recipe kit firm SimplyCook | BUSINESS SALE

Nestlé has strengthened its position in the e-commerc...

 
23
 
Feb
 

Lockdown exit: What does the road map look like for UK businesses? | BUSINESS NEWS

After a winter spent almost entirely in lockdown, the govern...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
25
 
Feb
 

Fairstone secures further backing from PE firm TA Associates | BUSINESS NEWS

Acquisitive wealth management firm Fairstone Financial Manag...

 
24
 
Feb
 

Nestlé acquires recipe kit firm SimplyCook | BUSINESS SALE

Nestlé has strengthened its position in the e-commerc...

 
23
 
Feb
 

Lockdown exit: What does the road map look like for UK businesses? | BUSINESS NEWS

After a winter spent almost entirely in lockdown, the govern...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources

Become a Member

News Categories

  • - Business Sale
  • - Division Sale
  • - Administration
  • - MBO/MBI
  • - Merger
  • - Commercial Property

View all news


About Us

Business Sale Report is the UK's leading independent business for sale & distressed business listing service. Established in 1995, the report offers an up-to-the-minute, comprehensive overview of businesses for sale, latest distressed business listings and daily acquisition news.

Our Services

Businesses for Sale
Distressed Companies
List a Business
Help with Finance
Buyer Acquisition Service
Small Businesses for Sale

Company

About Us
Insights
News
FAQs
Reviews
Terms & Conditions
Privacy Policy

Get In Touch

020 8875 0200
[email protected]
167 Oakhill Road, London, SW15 2QW
Working hours: Mon-Fri, 9am - 5:30pm


Sign up to our free newsletter



© 1995-2021. Business Sale Report Ltd. All rights reserved. www.business-sale.com.