‘Growing of businesses has been ignored’
With his announcement of plans to raise £145 million per year by 2021-22 and by focusing on contributions from the self-employed, Chancellor Philip Hammond may risk discouraging those who, in many cases, may have given up regular pay cheques to take a chance at creating something special.
The Chancellor also announced that the main rate of Class 4 National Insurance contributions for self-employed people is to increase by one percentage point to 10 per cent in April next year, and by a further percentage point the following year.
The average cost to those affected is 60p per week, but the headlines created by the move might, I fear, discourage those preparing to take risks and start a business.
I believe there should be much more support for entrepreneurs who are starting and scaling businesses.
Removing incentives for being self-employed is counter-intuitive and could lead to fewer enterprises and, consequently, fewer jobs.
We welcome the introduction of a £300m hardship fund for small businesses worst affected by increasing business rates, with the caveat that we want more long-term thinking too.
I’d like to see a more holistic review of business taxes, to simplify the system and make it easier for business owners to make long-term financial plans.
The current system penalises those with large premises, whereas I think entrepreneurs should be encouraged to invest and help bring our business parks and commercial and industrial zones back to life.
The proposed business rate hikes could have a major impact on start-ups and scale-ups, pushing
many entrepreneurs, however resilient, into trouble.
Entrepreneurial Spark will open its 13th UK hub in London this summer. On behalf of the thousands of businesses that are part of our organisation, we challenge the government to do everything it can to make the UK a great place to start and grow a business.
Reflecting on the measures implemented yesterday in the House of Commons, I am concerned that the valuable new business sector and the growth of businesses in general are issues that have, to a degree, been left behind by the new Budget.