UK Budget 2013 – How Preferred Commercial Viewed the Verdict for Small Businesses
The highly anticipated budget has finally been released by George Osborne but what exactly does it mean for small businesses? Particularly with today’s current economic climate it seemed unlikely that small businesses would receive much help from George Osborne’s 2013 budget. The UK has lulled in recession for the past 5 years and arguably despite the budget of 2011, not much has changed for small businesses.
What is highly encouraging for small businesses is that from April 2014, employers’ total national insurance will be cut by £2,000 for every company. This employment allowance will mean that a firm could take on one person on £22,000 without any additional national insurance payments.
Director of Preferred Commercial, a nationwide business broker, Rod Burney stated: “This is highly encouraging in terms of businesses being able to save money and allows them to hire more staff to help which helps in the overall unemployment issue that the UK currently face. It invites people to invest in the businesses and in the people of the UK, certainly encouraging growth within the UK economy.”
The reduction in national insurance will most likely benefit smaller firms rather than large, corporate firms as the discount is per company rather than employee so the small businesses will feel the benefit much more.