Last week saw the release of the autumn statement, the latest update on how the government is spending its money and what effect it’s been having.
Amid the groaning and screeching noises of the House of Commons and the carefully selected financial statistics, it’s hard to pick the bones out of Philip Hammond’s first statement as Chancellor. What does it mean to the various stakeholders in the UK?
We’re here to help businesses to be as efficient as possible, so we’ve done this for you. Here’s GAS’ coverage especially for businesses.
WHAT DOES THE AUTUMN STATEMENT MEAN FOR BUSINESS?
The Chancellor’s focus was firmly on innovation and productivity, signalling a boost for investment and tax for innovative companies and a large chunk of money designed to address the UK’s poor productivity in comparison with its peers.
Start-ups encouraged to scale
A £400m fund has been put aside to encourage small businesses with the potential to grow to take the leap, rather than sell up to larger firms and cash in.
If you’re a SME with growth potential, the British Business Bank will be handling the cash.
Corporation Tax to fall
In a bid to attract more companies to do business in the UK, Corporation Tax will fall from 20% to 17% in 2020. You’re keeping an extra 3% of your profit – surely a good thing?
Grants to support investment in British business
£400m has been set aside to supplement bids to invest in British businesses. If a potential investor was on the fence, this fund is designed to help them make the plunge. It applies on investments up to £1bn.
Research and Development companies get a boost
The official report says the government wants to “address the tax environment” for R&D companies using an additional £425m of funding to “make the UK an even more competitive place to do R&D”.
This news should spur you on if your company carried out R&D to ensure you’re receiving the maximum R&S tax relief possible.