SME businesses back in the driving seat?
SME businesses in Britain may find themselves back in the driving seat thanks to the unexpected election result as they may well find themselves being wooed once again in an attempt to build up support for the current government.
With recent proposals by Chancellor Philip Hammond to raise income by targeting SMEs, business leaders have seized on the political stalemate to argue that the government must drop these “raids” in an attempt to win their support.
Whether or not another election is called anytime soon, British businesses may find that they hold substantially more power than they did before.
Why small firms felt attacked
Philip Hammond's first Budget speech did not go over well with the nation's SMEs.
A planned cut to the dividend allowance that company directors and shareholders can receive tax-free - from £5,000 to £2,000 from April 2018 did not go over well and, as such, this policy has been dropped.
Despite this backtrack, millions of UK SMEs have been hit by the revaluation of business rates. The changes, which came into effect in England and Wales on 1 April 2017, have hit SMEs in those areas where property values have soared, with many claiming that the rate increases have affected their ability to operate or grow.
It will be interesting to see what direction things go with the current minority conservative government, a party that has previously been very pro-business.