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Did the Budget 2014 help small businesses?

Adam Barnes - DAS Law

  1. 10 April 2014
  2. Business
  3. 0 comments
Calculating for business

Did last month’s Budget 2014 hold any good news for start-up firms? Earlier this year, we launched the first Jelf Small Business UK Startup Ecosystem Report – which took 11 separate metrics into account to conclude that the South East is the “safest” overall region for new startups, closely followed by London, while the North East finished last.

However, the latest economic plan from the Chancellor of the Exchequer could be set to give new businesses a boost, particularly those focusing on exports and manufacturing, which was a common theme throughout the Budget.

First, the news that the Seed Enterprise Investment Scheme and capital gains tax 50 per cent reinvestment relief will be made permanent is expected to help to keep funding flowing for small and growing businesses. Additionally, the Apprenticeship Grants for Employers scheme is to be extended, with an additional £85 million in 2014-15 and 2015-16 to support recruitment and expansion.

Plans to double the funding available from the UK Export Finance Programme to £3 billion will certainly help British goods to reach emerging markets in India, Africa and China, stimulating new relationships between suppliers and importers overseas.

Meanwhile, manufacturing businesses will benefit from a £6 billion support package designed to reduce the impact of spiralling energy costs – as well as the welcome news that the Carbon Price Floor, a controversial tax on greenhouse gas emissions, will be frozen.

Finally, the government is to continue expanding its successful Enterprise Zones, with a new one set to launch in Northern Ireland – which could help to turn the region's fortunes around, considering it finished second from bottom in our Ecosystem Report in February. We may not be out of the woods yet, but this Budget at least includes a number of measures that’ll make an appreciable difference to start-ups around the country.

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