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What does the Budget mean for small business owners?
Alistair Darling’s Budget has been met by angry criticism from many individuals representing the interests of small business owners across the United Kingdom. One of the first voices of discontent was David Rose, the chief executive of Growthwire. Rose believes that one of the main features of the controversial budget, the 50 per cent tax rate for high earners, is ignorant and will damage the ability of the country to create wealth. Rose pointed out the potentially crippling effects of this new tax rate on small businesses, since “at least half of those in [the] top two per cent of earners are people who risked their own capital and assets, as entrepreneurs, to start new companies and create wealth and employment”.
David Rose did not stop there in his criticism of the budget, however, as his statement continued to attack the government’s general attitude towards those who have risked everything, including their emotional well-being, to try to ensure that their new company does not fail within three years (approximately seventy five per cent of new businesses suffer this very fate). Rose stated that there is absolutely “no relief or compensation” for the risks these individuals take and, similarly, no positive recognition of the service that they provide to the general public, in the form of GDP and employment opportunities.
Supporters of Darling’s Budget are likely to counteract these claims from Rose and others who hold similar opinions by quoting other features which may prove beneficial to small business owners in the long-term. These include one feature which may provide much-needed help for companies currently making a loss and small businesses in financial trouble. These companies will be able to reclaim more taxes paid over the last three years until late next year. Individuals starting companies in one of several technological sectors may also benefit from the introduction of a £750 million strategic investment fund. For help understanding your own financial situation, try contacting a professional finance solutions company.