Small businesses appeared on the agenda for most of the political parties in the run up to the election. The UK will now see if the Conservatives will honour their pledges in the next few years.
The key manifesto pledges that the Conservatives made regarding small businesses included:
- The introduction of a law to guarantee no rise in income tax rates, VAT or national insurance before 2020.
- Ensuring that all people who work for the minimum wage for 30 hours per week pay no income tax.
- Trebling the number of start-up loans to 75,000.
- Cutting red tape for businesses by £10billion.
- Increasing the inheritance tax threshold on family homes to £1million by 2017.
- Promising to review business rates.
- Investing more in superfast broadband for entrepreneurs.
- Running a surplus by 2018 – mainly due to welfare expenditure cuts.
- Launching a tax evasion crackdown and targeting the “aggressive” avoidance of tax.
- Achieving full employment by helping businesses create two million extra jobs.
- Creating three million new apprenticeships.
- Promising to review disadvantages faced by the self-employed including access to maternity pay and building up pensions.
- Increasing minimum wage to £6.70 by autumn 2015, and to £8 by 2020.
- Anyone who earns less than £12,500 to be exempt from income tax.
- Raising the threshold for the 40p tax rate so that nobody earning under £50,000 pays the rate.
In all, there is the possibility of positives and negatives for small businesses if the Conservative Government delivers all of their pledges. With many UK entrepreneurs in high hopes of this new Government, ‘fingers crossed’ it delivers for small businesses.
One of the aims is also to ease the leap from small to medium-sized businesses. There are many small businesses in the UK, but a lack of medium-sized ones, which impacts on jobs, exports, investment and tax revenues. With the Government’s pledges to help small businesses secure finance this may mean more will be able to grow and take the next step.
If you need any legal business help or advice for your small business, the expert team of Business Law Solicitors at Slater and Gordon can help. Call us on freephone 0800 916 9052 or contact us online and we will call you.