So here we go again, the annual “let’s pretend we’re doing something but actually not do very much” fest aka The Budget. We get presented with more tinkering which won’t actually make much of a difference. We need growth and we need it fast and through direct stimulae to the private sector. Yes some measures such as the exemption of employment tax (sorry, employers’ national insurance) for “eligible” small businesses is a start but why not go larger!? Use it for businesses that employ up to 50 people, now that would make a difference! Capital allowance increases are also useful but why were these reduced down to £25k in the first place and I do like the support for childcare for working families although as usual it is too complicated, why not just allow a proportion of childcare costs to be tax deductible by changing people’s tax coding.
Here is a simple 4 point plan to help SMEs and stimulate the economy as a result: 1. Make it cheaper to employ more people; 2. Make it easier to employ people and less onerous if they have to be laid off or fired; 3. Create a lending infrastructure to lend money directly and exclusively to businesses turning over less than £100m (cut out the banks); and 4. Literally halve red tape. Problem is of course that most policy makers know ‘naff all’ about running anything let alone a business and those that do haven’t done it for years.
Oh well there’s always next year.
Au revoir
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