Responding to the Chancellor’s Budget statement, Scottish Policy Chair of the Federation of Small Businesses (FSB), Andrew McRae, said:
“Increasing the employment allowance for small businesses by a record amount is a very welcome move and we’re pleased the Chancellor has heard us loud and clear. More than doubling it, from £5,000 to £10,500, will shield the smallest employers from the jobs tax, and is therefore a pro-jobs prioritisation in a tough Budget.
“Larger small, and medium-sized, businesses will struggle with the rises on employer national insurance on top of the large costs from the Government’s employment law plans. We’ve been very clear in our warning of the difficulty SMEs will be confronted with in meeting all of these changes at once – and the potential impact on jobs, wages and prices.
“Building a business involves a significant element of risk and personal, as well as financial, investment. But for the economy to grow, we need more people to be incentivised to take that leap and, in turn, create jobs, opportunities and prosperity in all communities across the country. The right decision has been taken to retain entrepreneurs’ relief (now branded Business Asset Disposal Relief) up to £1million, which is something we have campaigned hard for. Although the level of relief will gradually reduce over time, resulting in more tax being paid in the future on business sales, we’re pleased to see a differential has been kept.
“The freeze on fuel duty will be a huge relief for many. Any rise would have squeezed already thin margins for many of the three quarters of Scottish small businesses who rely on their vehicles for their day-to-day operations.
“Attention will now turn to the Scottish Government’s draft Budget on 4 December and in particular what it decides to do for our struggling retail, hospitality and leisure sectors.
“Following the decision to extend rates relief yet again for those businesses in England, we will continue to push Scottish Ministers to pass on at least some of this relief to support their counterparts north of the border.
“Bars, restaurants and retail businesses have weathered a number of storms in recent years, leaving many teetering on the brink. Their challenges are no different to those of English operators, yet similar relief has not been extended to those businesses in Scotland since July 2022.
“Against a challenging backdrop, today’s UK Budget shows a clear direction in business policy now for the whole of this Parliament to target support at small businesses, rather than big corporates - prioritising everyday entrepreneurs working in local communities in all parts of the country.
“Its true test, however, will be whether small businesses can grow and end the economic stagnation the UK has been stuck in."
Ends
Notes to Editors
- The Federation of Small Businesses (FSB) is a non-profit, non-party-political organisation that offers its members a wide range of vital business services, including advice, financial expertise, support and a powerful voice heard in governments. Founded in 1974, FSB celebrates its 50th anniversary in 2024. More information is available at www.fsb.org.uk.
- Micro, small and medium-sized businesses comprise almost all enterprises in Scotland (99%), employ 1.2 million people and turn over nearly £123bn.
For further information contact:
Euan McGrory – [email protected] - 07734 509227