AUTUMN STATEMENT: SMALL BUSINESS, BIG EXPECTATIONS.

Burnham's government is preparing to present its first Budget tomorrow, Wednesday 28th, with Chancellor John Healey expected to outline the proposals at about 12.30pm.

Ross Boyd, founder and director of Belfast-based chartered accountancy RBCA, explains that it may not contain what local businesses across Northern Ireland want to see when it comes to alleviating financial pressures.

He said, “Northern Ireland cannot afford to deter the next generation of entrepreneurs from doing business. Labour’s small business plan sets out commitments to ensure that owner-managed businesses remain part of the fabric of our towns and cities. Here in Northern Ireland, owner-managed businesses support families, suppliers, and communities. But the increasing number of vacant units on our high streets shows exactly what is at stake.

“Current incentives are inadequate, and they should be emboldened within a real growth plan. After all, how can we expect small businesses to continue to deliver growth over the coming years, when their owners are wondering if they can even afford to trade in today’s economic environment? The Autumn Budget will test whether this government is prepared to recognise SMEs as drivers of economic growth and offer support that reflects that potential.

“Making Tax Digital brings a tricky adjustment. Whilst digitalisation can improve financial management, the administrative burden can leave an owner investing more time reporting on the business and less time earning from it. For someone already questioning whether the return justifies the effort, it might just encourage them to not bother at all. Corporation Tax remains the sticking point, with a 25% main rate and a 19% small profits rate. What matters most to an owner is how much remains after tax and how they can grow their business to generate more income. The government should consider targeted incentives that make investment more affordable, allowing them to expand. Increasing the marginal corporation tax rate to £250,000 instead of £50,000 would be a real relief to small businesses.

“Accountants help businesses understand the numbers, but it is Government that must recognise what those numbers are telling us - overheads and outgoings are absorbing the cash needed for investment. We now need to hear how this Labour Government intends to support growth, but unfortunately, I suspect come October 28th, the silence may be deafening.”

For more information visit rbca.co