15 Mar Spring Budget: The ‘Make or break’ for small firms
Last November, Chancellor Jeremy Hunt, announced a support package for small businesses totalling £14 billion as they struggled with rising energy bills. This Wednesday these same firms are bracing for a much less generous support package, as the Treasury is set on cutting inflation and minimising public debt. The demands of small firms across the nation are necessary for their survival, after a long, devastating winter. Some are predicting that Hunt may have more room with public finances than previously expected, yet small businesses’ demands are still growing in the hopes that the budget will help them stay afloat. SaveMoneyCutCarbon, Britain’s leading sustainability and money-saving platform have put together the most pressing demands small businesses are hoping to see come out of the Spring Budget.
Investment
The Chancellor has made it clear that he hopes to bring inflation down and restore some calm to the economy. However, as he seems to be less focused on economic growth, small business groups across the nation have been lobbying for the Chancellor to include tax breaks for investments to help with business growth. There is concern about the government’s ‘super-deduction’ scheme for capital investment in March. With next month’s corporation tax increasing from 19% – 25%, firms are worried that there won’t be much incentive to inspire capital spending.
Energy Prices
The Government announced the Energy Bill Relief Scheme last September to ease the burden of soaring businesses. However, the relief is set to be drastically reduced as 1st April rolls around, to be replaced by the Energy Bill Discount Scheme, discounted a far less amount than its predecessor. Much to the dismay of industry leaders, the discount scheme is predicted to barely scratch the surface of the needs of businesses across the nation. Though there has been some discussion about the relief extending past April for households, there hasn’t been any word if businesses are likely to receive extended help, prompting business leaders to call for more to be done to help firms with their own energy efficiency to help mitigate costs.
Businesses unsure of how to start their net zero journeys or seeking guidance on best practices can get help to plan a way to a leaner, cleaner strategy for sustainability with SaveMoneyCutCarbon, Britain’s leading sustainability and money-saving platform, which is offering a free 30-minute Carbon Mentor call to give expert guidance on where to start, what ROI to expect, how to manage budgets and what could be achieved through green initiatives.
The British Chambers of Commerce project that less than half (43%) of UK firms are expecting profitability in the next 12 months, whilst 1-in-3 hospitality and leisure businesses fear closing this year due to the inability to afford energy costs, according to eEnergy. In the wake of this setback, a new study from SaveMoneyCutCarbon has found that over half (51%) of employers in the UK still don’t know where or how to start reducing their carbon emissions. This is supported by research from Ecologi, which found that 42% of SME owners in the UK believe that it’s important to be sustainable but struggle because of a lack of guidance.
