Member Article

Spring Budget 2017 lacks scaleup ambition, say North East entrepreneurs

Chancellor Philip Hammond’s Spring Budget has come under fire from North East entrepreneurs over lacking sufficient support for scaleup ambitions.

83% of respondents in an Entrepreneurs’ Forum snap poll referenced the government’s National Insurance increase for the self-employed as a major barrier to business growth.

Gillian Marshall, chief executive of the Entrepreneurs’ Forum, explained: “Our members are disappointed by the outcome of the Budget, which can act as a disincentive to start and grow a business.

“Scale-up businesses have the potential to provide a solid backbone for the UK economy and therefore require support from government to achieve their ambitions.

“With Entrepreneurs Relief and low interest rates the environment is pretty solid for those with ambitions to scale-up, and the government has acknowledged the importance of scale-ups with Small Business Minister Margot James becoming a champion for growing businesses.

“However, unfortunately that has not transferred into the Budget, which, instead, made entrepreneurs a tax target rather than a growth generator.”

Editor’s analysis

Measures revealed by the Chancellor in Wednesday’s Budget will have left many self made businessmen and women seething.

Starting a business is no easy feat. Those who do start up, who go on to employ others and who eventually further scale their enterprises become the backbone of the economy.

At a time where the spirit of entrepreneurship remains threatened by uncertainty brought about by Brexit, the Budget only provided a further disincentive to many.

Of course the region’s community of self employed people will pay their dues, they have little choice, although such measures don’t help to cultivate an entrepreneurial culture which is so often needed to push a company into scaleup pursuit.

What do you think? Will the National Insurance increase affect your business? Let us know in the comments section below.

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