Chancellor adopts FSB proposal to help 500k small firms through Employment Allowance

Uprating the Employment Allowance was a welcome announcement in the spring statement and will help small business with the rising national insurance costs, said the country’s largest small-business organisation.
The Federation of Small Businesses national chair Martin McTague said he was encouraged by the spring statement’s adoption of a number of initiatives proposed by the federation.

“We are very pleased to see the Chancellor adopting our top ask for this Spring Statement: uprating the Employment Allowance to help small employers with national insurance costs,” he said.

“We originally put forward the Employment Allowance as a targeted measure to help small firms, and it has now been expanded three times since its creation.

“Together with a cut to fuel duty, these measures will provide crucial breathing space for our embattled small employers.”

Mr McTague said the spring statement marks a good starting point, with welcome measures on business rates, net zero and energy investment taking effect next month.

“With steep inflation, energy bills increasing fast, without the same support in place as enjoyed by consumers, and hiring pressures landing hard on small firms, more of the right stuff will be needed in the autumn given this challenging backdrop,” he said.

“We’ve seen a VAT cut on net zero investments for households today, which is good for small firms involved in their installation.

“However, a high street shop or local bar cannot access the same support that consumers do when dealing with the same energy supplier, and they should have access to the same assistance to reduce energy use and support the move to net zero.”

However, Mr McTague warned there is still work to be done to ensure the survival of the UK’s small-business sector.

Source Financial Accountant click here to read more.

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