Much spring waffle but Hammond’s small firms move cheers

Comment Martin Flanagan

Chancellor Philip Hammond’s spring statement felt like a sloth on speed. Free-trading greater Global Britain, punching our weight against the four corners of the earth, looking forward not backward… most of the post-brexit vote minted cliches were there to try and give dynamism to a political setpiece that didn’t have much to say. A summary of the state of the economy and public finances, but no spending or tax-raising measures.

The Office for Budget Responsibility boosted its UK economic growth forecast for this year from 1.4 per cent to 1.5 per cent. That gives a flavour of the fare on offer.

If anything, it was the purely nuts-andbolts issues affecting smaller businesses where Hammond got the most positive response. The Federation of Small Businesses was predictably pleased that the Chancellor committed to end the scourge of late payments to smaller firms by big business – in effect, a free overdraft for the big boys. The FSB has said that the endemic late payments crisis in the UK destroys 50,000 businesses a year and that eliminating such late payments could add £2.5 billion to the economy annually and help close the productivity gap.

Perhaps the downfall of Carillion and the resulting severe bow wave engulfing suppliers has concentrated Hammond’s mind on the subject.

Another plus for small businesses in the spring statement was the £80 million of Whitehall funding support for firms that want to take on an apprentice.

Perhaps we could have seen it coming from a UK government that wants to see three million new apprenticeships by 2020. It may not be enough in itself, but is a good, practical first step in the right direction.

Likewise, the continuing of the Chancellor’s two-year freeze on the VAT registration threshold. Anything that cuts red tape for small businesses is welcome.

Such tangible, if undramatic, moves in the sector were welcome.