Press Statement - UKBF reaction to Spring Statement 2022
Small businesses deserve more from Spring Statement says UKBF
No surprises and no help say small and micro-business owners
Today's Spring Statement by Rishi Sunak has given little hope or support to thousands of struggling small and micro businesses says UKBF, the UK's largest online community for small and micro-business owners.
In his much-anticipated statement that was delivered on the day that inflation was forecast by the Office for Budget Responsibility to be 7.4% this year, Sunak's announcements for small businesses have been met with disappointment from the UK's largest online community of small and micro-business owners who feel it is too little and far too late.
Despite announcements on fuel duty and small business support through changes to National Insurance, the Employment Allowance, and business investment, there was an obvious lack of specific support for small businesses to help alleviate the escalating energy costs that are currently their most significant challenge.
Richard Osborne, UKBF CEO and founder says, "This Spring Statement teeters on the edge of supporting the UK's small and micro-business owners, but offers little more."
"We know first-hand from the UKBF community that thousands of small and micro-businesses simply can not cope with the extortionate energy costs they are facing. Where was the support to help mitigate them?"
"Whilst the fuel duty cut of 5p per litre is welcome for small businesses, it's no more than a drop in the ocean given the astronomical increases of more than 40p a litre since last year's Spring Statement. Many of the small and micro-business in UKBF are struggling with the UK's spiralling fuel costs and, given the amount of tax the government receives from the inflated fuel prices, greater reductions could have been made."
"Similarly, the planned hike to National Insurance contributions could have been axed. Instead, it has simply been tweaked with the National Insurance threshold rising to £12,570 before any income tax or National Insurance is due. Whilst this will be helpful for company directors who take a basic salary, as well as the lowest-paid workers, we question why they will still be paying National Insurance for three months before the new 'allowance' takes effect in July."
Osborne continues, "The boost to the Employment Allowance which is increasing to £5,000 will help many small business employers and it is a move we welcome. The cut to tax rates on business investment is also good to hear, but we will wait to hear the details of what this will be in the autumn Budget and what tangible benefits it will have on small and micro-businesses."
Commenting in the UKBF online community, The Byre, said: "When one MP shouted "Is that it?" he summed it up perfectly. A total non-event, except that it is a devastating failure by omission. So many opportunities missed, so many chances for improvement not taken."
-ENDS-
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Notes to Editors
- UK Business Forums, part of Business Data Group Ltd, was formed in 2003 to support small and micro business owners through knowledge sharing and networking.
- UKBF membership has grown to over 270,000 registered members from small and micro-businesses, and over 5,000 discussion comments are posted in the UKBF community every month.
- UKBF is the UK’s most authoritative resource for ambitious small and micro-businesses. Since its formation in 2003, every month over 270,000 company founders turn to UKBF for peer-to-peer support and guidance as they develop and grow their businesses. UKBF helps its active community to solve the challenges associated with owning and building a small business through its comprehensive library of value-driven resources, how-to content, inspiring podcasts and videos; and nationwide networking opportunities. UKBF membership continues to grow, day-on-day, with over 1,200 new members joining every month to benefit from the go-to insights, guides, and community support.
- As the champion for small businesses, UKBF is more than just another online community. It is the backbone of small and micro businesses; trusted to represent and amplify their voices amongst government and other key stakeholders, and help drive positive change for the small and micro-business sector.
