Commons Sense

In the recent Spring Budget, the Chancellor delivered measures that will help the economy spring back to life: a tax cut through national insurance reductions, an expansion of full expensing for businesses, and investments to boost our future energy security.

The budget also contained measures that will benefit our small and medium-sized enterprises (SMEs) in Windsor, and across the country, such as an increase in VAT registration thresholds and the freezing of alcohol duty, which will provide some welcome relief to our fantastic pubs and restaurants after a tough pandemic period.

There were also some further changes affecting SMEs which flew somewhat under the radar, that will be just as important for small business growth.

Firstly, the Government has extended the British Business Bank’s Recovery Loan Scheme to March 2026.

This offers a 70 per cent government guarantee on loans of up to £2million to SMEs.

Second, a critical technical change is being made to restore the eligibility for individuals to qualify as high net worth and sophisticated investors, jumpstarting the opportunities for SMEs to raise money.

The budget builds on the long-term work this Government is doing to support SMEs.

Ministers have improved SME access to finance through the Start Up Loans Company, providing £1billion to over 110,000 businesses, alongside a year of free business mentoring to successful applicants.

The Government has also taken steps to tackle the issue of late payments, so detrimental to small businesses, by creating a Small Business Commissioner, as well as the Payment Practices Reporting Duty, requiring large companies to regularly report their payment practices.

The Government has rightly named 2024 as ‘the year of the SME.’

I wholeheartedly support them in their efforts.