Good afternoon,
I hope you are well.
Businesses such as yourself continue to be the lifeblood of our local economy and communities. Whether your business is small, medium or big, you have a profound impact on the economic success of both Scunthorpe and the UK, which is why the Government has worked to provide additional support for businesses. These past few months have been a turbulent time, and enabling the success of businesses is absolutely key to ensuring the sustainability of our growing economy.
With this year’s Autumn Statement newly announced, I thought it best to keep you updated on the support introduced by the Government in the past few months, along with additional opportunities for the further development of your business.
Autumn Statement 2023
In the Chancellor of the Exchequer’s Autumn Statement, one of his key priorities was Backing British Business. Economic Growth stems from providing the right conditions for businesses in the private sector to thrive. The Autumn Statement lays the groundworks for these conditions to be met through a variety of avenues, including:
Support on Business Rates
The government is announcing a business rates support package worth £4.3 billion over the next five years to support small businesses and the high street.
Many larger retail businesses and large supermarkets benefitted from the 2023 business rates revaluation and the £13.6 billion package of support provided at last year’s Autumn Budget, which together decreased total bills paid by the retail sector by an estimated 20% and large supermarkets by an estimated 15%. A third of properties in England have already been taken out of rates completely through Small Business Rates Relief, and the government has also frozen the tax rate for the last three years, extended the relief for Retail, Hospitality and Leisure (RHL) properties and removed downwards caps from Transitional Relief.
The government will continue to make sure that support is offered to the small businesses, high street shops and independent cafes and pubs that need it most. The small business multiplier will be frozen for another year, while the 75% RHL relief will be extended for 2024-25. The standard multiplier will be uprated in line with September’s rate of inflation. These changes will take effect from 1 April 2024.
Additionally, the Government has increasingly supported businesses through the likes of super deduction, before full expensing was introduced in this year’s Spring Budget, intended to last until 2026. For many, this news was incredibly welcome. It is for this reason that the Government has now decided to take this one step further and is making this change permanent. This is the biggest tax cut in modern British history, allowing businesses to write off the full cost of qualifying plant and machinery investment.
Support for the Self-Employed
With the significantly important role that self-employed people play in our labour market and economic growth, it is only right that the Government rewards their contribution. This is primarily through tax reform and simplification for those in the self-employed sector. Therefore, from 6 April 2024, self-employed people with annual profits above £12,750 will no longer be required to pay Class 2 NICs, while continuing to receive access contributory benefits including the State Pension. Put simply, this tax simplification is effectively an abolishment of the Class 2 NIC.
Those with profits under £6,725 and others who pay Class 2 NICs voluntarily to get access to contributory benefits will continue to be able to do so. However, the weekly rate they pay will be frozen at £3.45 for 2024-25 and will not rise to match inflation.
In addition to this, the main rate of Self-employed National Insurance (Class 4 NICs) by 1p, from 9% to 8% from 6 April 2024. This will impact around 2 million people, and is worth £350 for the average self-employed person.
Finally, in order to support low income working individuals, the Government have frozen the Small Profits Threshold at £6,275. This will maintain the access of these individuals to their contributory benefits, without having to pay NICs.
Supporting Small Businesses
The Government recognises that late payments have significant cash-flow implications on SMEs. These hold SMEs back from investing and innovating to further their businesses. It is for this reason that the Government has introduced more stringent payment time requirements for firms bidding for large government contracts. From April 2024, firms bidding for government contracts over £5 million will have to demonstrate they pay their own invoices within an average of 55 days, tightening to 45 days in April 2025, and to 30 days in the coming years. This will ensure that sub-contractors, which are often SMEs, are able to receive payments on time and not be restricted by late payments.
The Government also understands that in order for small businesses to prosper, SME leaders must have access to learn new skills and gain new opportunities. With this in mind, the Government has taken the decision to expand the Made Smarter Adoption Programme, which will helps manufacturing SMEs utilise the digital technologies we have access to here in the UK.
This is paired with a taskforce to explore how the Government can best support SMEs in adopting digital technology, deliver the Help to Grow: Management programme beyond the next two years, and offer additional support to allow SMEs to access global markets through UK Export Finance.
Planning Reform
In order to unlock new commercial developments and enhance our transition to net-zero, the Autumn Statement has also introduced reforms to our planning system. Our planning system is currently inefficient, and can see many looking to develop their business waiting longer than necessary to do so. To tackle this, the Government has introduced new premium planning services across England with guaranteed accelerated decision dates for major applications and fee refunds wherever these are not met.
These services will improve the existing patchwork approach of Planning Performance Agreements. The government will also invest £5 million to incentivise greater use of Local Development Orders in England, to end delays for businesses so that key commercial projects secure planning permission faster.
Support for the Hospitality Sector
I welcomed the Chancellors announcement in the budget that Alcohol Duty is to remain frozen, providing reliefs for beer, cider and wine sold in pubs. Pubs can often be at the heart of communities, and I have been a long-standing supporter for the Long Live the Local campaign to help pubs in Scunthorpe recover and thrive. Pubs in Scunthorpe support 973 jobs and contribute £25.8m to the local economy, as well as being the heart of communities, and they should continue to be supported through these difficult times.
Grants and Funding Opportunities
North Lincolnshire Council (NLC) has been granted funds through the UK Shared Prosperity Fund, as a means of achieving the goals set out in the Levelling Up Agenda. Within this, NLC have dedicated a portion of this funding to support local businesses, through the UKSPF Business Supply Readiness Grant.
This grant looks to offer Revenue aid to businesses, helping them to invest in relevant accreditations that will aid the development of their business and safeguard existing jobs. The grant will also seek new skilled employment opportunities for residents. Grant level requests can be anywhere between £400-£1,000, and the investment ratio is 50%.
To find out more or express your interest in receiving the funding, please follow the link below:
UKSPF Business Supply Readiness Grant
North Lincolnshire Council is also looking to support those who are ready to take the next step and become self-employed or start a small business.
The Business Start-Up Grant is designed to do exactly this, providing a one-off payment that will assist individuals with meeting the associated business costs with becoming self-employed or starting a small business. Grants are up to a maximum of £500.
To find out more or express your interest in receiving the funding, please follow the link below:
The Government is also providing free mentoring and online support for SME leaders, which will help them improve the performance of their business. This support, known as Be the Business, provides free business mentors to act as a sounding board and support business leaders with challenges and opportunities, and free online support offering inspiration from similar businesses, information, advice and tools. This can be available over 12 weeks or 12 months.
To find out more or express your interest in receiving the funding, please follow the link below:
There are a wide variety of grants, funds and additional opportunities that are available to you in order for you to further your business. To explore the options that are currently offered by the Government and other enterprises, please follow the link below:
As I say, businesses here in Scunthorpe are so essential to the prosperity of our area and the rest of the country. I would like to take this time to thank you all for your continued hard-work, dedication and contribution to our local community.
Thank you for taking the time to read this update and, as always, if there is ever anything that myself or my team can help you with, please do get back in touch. We are always happy to help. I look forward to speaking to you all again in my next update.
My very best wishes,
Holly