Ahead of the Autumn Statement, Purbeck Personal Guarantee Insurance a business which has supported thousands of small businesses across the UK from the risks of personal guarantees for business loans, has set out a wishlist for the Chancellor to support SMEs.
Todd Davison, MD of Purbeck Personal Guarantee Insurance, said, “This Autumn Statement will be the first not be overshadowed by Brexit negotiations and uncertainty, the global pandemic or the aftermath of the mini-budget last year.
The macroeconomic indicators have improved, with inflation moving back to target levels and the Monetary Policy Committee putting a stop to any further bank rate increases in recent months.
“Given recent bi-election results, political sentiment and cabinet reshuffles, there may be a temptation to use the Autumn Statement to encourage voters but the Chancellor must be mindful not to undermine the tentative signs of recovery.
We need robust policies to support business investment and provide assistance to sectors which are still facing strong headwinds.”
Holistic strategy to support business transition away from high-cost energy
The development and publication of a holistic approach to transitioning the UK away from high-cost energy. Small businesses are susceptible to market price fluctuations and current subsidies offered are not sustainable and place a burden on the UK taxpayer.
Initiatives are needed to help businesses plan for energy consumption with a focus on renewable and green technologies.
Encourage businesses to undertake sustainable investment
A Government supported tax scheme to encourage businesses to move to green technologies. This could be introduced by way of tax relief for investment in green plant and machinery as part of the UK’s commitment to Net Zero.
Companies who have achieved Net Zero could pay a lower corporation tax than those that have not. There could also be a ‘Buy British’ condition to obtain additional reliefs which would help to encourage positive multiplier effects.
Enhance UK’s labour market participation rates
Vocational training vouchers for workers who wish to be reskilled and for employers to receive tax benefits for employing and training staff in desirable sectors or skills (such as sustainability, technology, health etc.).
A consultation on reduced National Insurance Contributions for returning workers and retraining funding for vocational qualifications.
Change tax relief rules for landlords
A reversal of Section 24 giving landlords the ability to set the full amount of mortgage interest against rental income, before tax is calculated. This would help stop private landlords leaving the rental market, creating a dearth in supply, pushing rental prices up for tenants.