June 5th, 2015.
Post-Election Reflection: Business Expectations with the Tories
The votes are in, the die has been cast and the Tories are back in power for another term. But what does this mean for business? We know that there are lots of cuts that are planned and the increase in austerity was (apparently) unwanted by voters, trade unionists and academics – but with these plans in place, how will British businesses be affected?
As with all politics, you take the good with the bad, and nothing is set in stone so every assumption should be taken with a pinch of salt. Here’s what the policies suggest will happen:
[Image: “David Cameron ” under CC BY-SA 2.0]
More Start-up Support
Under the new Conservative government there will be more measures in place to help start-up businesses succeed. Don’t expect equal support for all industries across the UK, as things like tech companies in London are likely to see much more support than, say, pencil manufacturers in mid-Wales. The official figure here is £82.5 million being invested in the government’s StartUp Loan scheme, which is set out to help entrepreneurs and small businesses achieve success and work to boost Britain’s economic growth. These won’t be five and six figure investments, but rather small loans between £2,500 – £10,000 which are repaid over a period of up to five years.
Cameron has promised an in-out referendum within two years, which could have an absolutely enormous impact on businesses in the UK – especially those with a European market. While we don’t necessarily know what will happen either way, it’s likely that a choice to leave the EU will result in greater growth of industry in the UK due to the increase in import/export prices this change would bring.
Money to House Builders
Great news for people in the property business, as Cameron has pledged £1bn to fund 400,000 homes on brownfield sites. This means that anyone already in the homebuilding industry will have more capital being put behind them, helping them maintain their large margin without having to build on their land banks.
The new government has pledged to create 3,000 new apprenticeships over the next five years. This is great news for small companies looking for funding to bring on apprentices, as well as people looking to get in-work training. While 3,000 may not sound like a particularly significant number, it will have a huge impact for the businesses that receive the funding.
Review of Business Rates
Small businesses have been waiting a long time for a reform of business rates, and a ‘radical review’ was issued earlier this year to be implemented by the 2016 Budget. This isn’t just a promise, it was a significant part of their manifesto in an effort to help high street businesses achieve more success.
There’s been a significant fall in ‘real wages’ over the last couple of years, but the Tories are claiming that by increasing the minimum wage, and level at which taxation starts, there will be a leap in real wages. Theoretically this change will mean that people working 40 hours a week on minimum wage will not be required to pay tax – increasing their take-home salary.
How do you feel about the Conservative government and their plans for business? Leave us a comment below.