Leighton Reed, Director, MHA Broomfield Alexander
In his last Autumn Statement before the General Election next year, the Chancellor has put together a package of measures targeted to help small businesses.
Before the statement, many had lobbied for an overhaul of business rates which is often a businesses’ largest cost after wages. Those that did will be happy that he promised to look at overhauling the system as well as capping inflation linked increases and offering larger discounts to high street shops, pubs and cafes.
To help the UK economy to grow faster by aligning ourselves to the growth of other fast growing countries, he has also introduced a package of measures to encourage investment in Asia, Africa and South America. Businesses looking to expand into those countries should benefit but the detail has yet to be understood.
While the UK has one of the lowest rates of company tax at 20% from April 2015, the Chancellor continues to tackle tax avoidance and with the strapline “low taxes but taxes that are paid” he will introduce a tax rate of 25% on profits artificially diverted to other countries, the so-called “Google tax”.