A Budget U-Turn

We can’t deny the tension that arose after the announcements made in the Spring Budget. Despite a lot of the changes being common knowledge before March even began, the final announcements weren’t well received.

National insurance contributions

The most notable change put forward was undoubtedly the national insurance contribution increase. And I can’t deny I find the U-turn that happened just a few days later not only interesting, but hugely inspiring too. It can’t be ignored that the changes put forward for NICs could have had an immense impact on smaller businesses. Yet by businesses and individuals standing strong and speaking out, the decision was overturned. I think we can call that a win and massive step forward for small businesses and the self-employed.

Business rates

A somewhat more welcome announcement was the clarification of changes in business rates. For some time before, businesses remained uncertain of how they would be affected by impending changes. But the announcement saw a level of respite. And now smaller businesses know there is a cap on increases, a discount for pubs and a discretionary relief fund, so can start planning accordingly.

If you missed it you can read our overview of the Spring Budget here.