Member Article

What do SME owners want to see in tomorrow's budget?

With Brexit just around the corner, a lot of business owners will be casting a keen eye over tomorrow’s Autumn Budget.

Mary Maguire, MD of Astute Recruitment, talks us through her thoughts on what should be included to help SMEs thrive.

80% of SMEs never grow beyond 10 staff. This has to change and the government has the perfect opportunity to help enable this change through the tomorrow’s Budget. With this in mind, there are several steps Philip Hammond should be taking tomorrow to help SMEs flourish and grow.

1. More ethical banking options.SMEs often struggle to get financing from bigger banks that use algorithms to spit out lending decisions. Instead, we need more SME-friendly banks, such as Burnley Savings and Loans, with actual humans making key decisions.

2. More funding options to make increased working capital available. Something like a central ‘growth fund’ would help give SMEs access to funding and make a genuine difference to business owners who are keen to expand their businesses.

3. Tax relief initiatives for SMEs to train or upskill their staff. The key to growth for any business is finding the right team and keeping them, and the best way to retain staff is to offer them a tangible pathway of progression, through training and promotions.

4. Reverse class 4 rises to National Insurance contributions. This would be a great opportunity to dispel any notions that the government doesn’t understand small business and doesn’t value the risks people take in trying to work for themselves.

5. Cancel the possible lowering of the VAT threshold to below £85,000. MD’s, entrepreneurs and the self-employed looking to grow need assurances they have total immunity for this for at least 4 years. It would also remove the perception that the government is out to ‘grab’ yet more cash from SME businesses.

6. Introduce a government-backed ‘export vouchers’ scheme for SMEs who export to Europe. This would have government-funded export experts advise niche exporters on how to enable their young companies to sell worldwide.

7. Make the Prompt Payment Code for SMEs compulsory. More than 2000 SMEs have signed up to this initiative already, but the government need to make this compulsory, ensuring that big companies have to pay their SME suppliers on time every time, and have a visible record of this for potential SME suppliers to view.

8. Suspend the planned increases to Business Rates. This, along with making exemptions for SMEs at least for a few years would help SMEs control spiralling rate rises. Some companies are now seeing 200% increases, which is not commercially viable.

9. Provision for tax relief on investment in occupational health schemes. SMEs should be recognising and dealing professionally with mental health issues in the workplace. The government should perhaps consider providing funding to train a representative within every SME to implement best practice.

Essentially, the government should have an obligation to look after the UK’s SME community. With Brexit looming on the horizon, it’s more important than ever that entrepreneurship is safeguarded and encouraged as the UK looks to become more self-sufficient.

This was posted in Bdaily's Members' News section by Astute Recruitment .