In Focus Commercial Credit
SMEs call for an Emergency Brexit Budget to ‘get serious’
Small businesses want to see significant changes put in place to help them to thrive in the event of a no-deal Brexit
Martin McTague Chairman, policy and advocacy, Federation of Small Businesses
We are urging chancellor Sajid Javid to produce an Emergency Budget aimed at supporting small firms hampered by a struggling pound, weak economic growth, and the prospect of a chaotic no-deal Brexit on 31 October.
Shock The government has set aside around £6bn for no-deal preparations, with only £108m dedicated to supporting the small businesses that make-up 99% of the economy. To avoid a shock to the jobs market, we
are calling for an Emergency Budget to include a blanket cut to Employer NICs. A reduction from 13.8% to 12% at a cost
of £11bn would help small employers to manage the surge in staffing costs which has taken place over the last four years. We also recommend an uprating of the
£3,000 Employment Allowance following a decision to target the relief at the small firms that need it most.
Flexible payment plans Elsewhere, we are calling for HMRC to urgently extend the flexible payment plans and deadline leniency reserved for firms in financial distress to the wider small business and self-employed community, urging it to implement and communicate the move imminently. Doing so will allow small firms time to
sure up balance sheets and prepare for potential changes to trading arrangements and economic conditions.
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We are calling for HMRC to urgently extend the flexible payment plans and deadline leniency reserved for firms in financial distress to the wider small business and self-employed community, urging it to implement and communicate the move imminently
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Lenders Banks should also be prepared to take a more lenient approach to requests for overdrafts and fresh finance in the coming months.
Reduced VAT Other recommendations include reducing the 20% VAT rate – charged indiscriminately on almost all goods and services – and a return to increases to the VAT turnover threshold to encourage business growth. The threshold is currently frozen at
£85,000, following discussions between ourselves and the previous chancellor.
September 2019
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