On Wednesday, 21 March, George Osborne will deliver his third Budget as Chancellor. It comes against a backdrop of rising overheads and ongoing tough trading conditions, wider economic woes and depressingly high unemployment, partially a result of deep cuts to public spending as the government seeks to drive down national debt.
Small businesses and their representative groups are desperate to see measures introduced in the 2012 Budget that enable businesses and their customers to feel more confident about the future. Optimism is rare, especially on the high street, with many businesses continuing to go to the wall.
Tax reductions would also be warmly welcomed, of course – and not just to the 50% rate for high-earners. Even modest tax reductions could help ease the cashflow pressures that many small-business owners face and perhaps stimulate investment (and possibly even more jobs).
The Chancellor has already said there will be no large tax giveaways (except perhaps for the high earners?), but it will be interesting to see if he does anything to ease the tax burden small firms face. Organisations such as the Federation of Small Businesses have called for a simplified ‘turnover tax’ for micro businesses.
Both the Forum of Private Business (FPB) and the Institute of Directors have said they want to see the headline-grabbing 50p income tax rate scrapped, arguing that it doesn’t encourage entrepreneurship.
Many business groups have called on the Chancellor to scrap the 3p fuel duty increase that is planned for August, arguing it is yet another burden that businesses throughout the UK simply cannot afford.
It remains to be seen whether the government can keep small businesses happy. Follow the Budget 2012 on the Donuts and find out what happens.
Budget 2012 small business coverage on the Donuts
- We’ll be tweeting about the Budget throughout the day and inviting your comments. Follow us on Twitter.
- We’ll also be posting blogs written by small business experts and you’ll be able to add your comments and responses.
- After the Chancellor’s statement we’ll be posting our Budget 2012 summary for small businesses and in our news section we’ll be gauging reaction from small firms and their representatives.
- Join in with your tweets and blog comments to let us know your thoughts about the UK Budget 2012.
You can also have your say in our forum post: Budget 2012 – What do you think?
More Budget 2012 reading
- Budget 2012 must boost business confidence, say business groups
- Tax changes - can any government get it right?