Will SMEs Be the ‘Biggest Losers’ in The Next UK Budget?
Will SMEs be the biggest losers in the UK Budget 2023? Find out how the government’s plans could impact small businesses. Read more here.
When is the 2023 budget announced?
The next UK budget is due March 15th 2023.
It will be delivered by (chancellor Jeremy Hunt) and it is expected to be a crucial event for the country as it continues to navigate the economic fallout from the COVID-19 pandemic. The government has already announced several initiatives related to healthcare, education, housing, and infrastructure, and these are likely to be reflected in the budget breakdown. The budget is also expected to address the current UK budget deficit, which has grown significantly due to the pandemic.
Investors, businesses, and the general public will be closely watching the budget to see how the government plans to support the economy and promote growth in the coming years.
As I mentioned previously in my blog, Britain is a nation of entrepreneurs with many more yearning to start a business. Self-employment has grown a whopping 40% since 2000 and it looks like this number was set to reach a record 5 million by the end of the decade.
What is the UK Budget?
The UK Budget is an annual event where the Chancellor of the Exchequer presents the government’s plans for spending and revenue for the upcoming fiscal year. The budget sets out the government’s plans for taxation, spending, borrowing, and debt, and it is one of the most important financial events in the UK. The budget is usually presented in March or April each year and is closely watched by businesses, investors, and the general public.
What Will The March 2023 Budget Contain?
The UK government has revealed that borrowing in the current financial year is £30 billion less than predicted, which has led to speculation that the Chancellor of the Exchequer may have more room for manoeuvring in the upcoming budget. The figures show that borrowing for the year to date is at £54.5 billion, down from the predicted £84.7 billion, due to higher tax revenues and lower public spending.
The announcement has prompted calls for the government to use the extra money to support struggling sectors of the economy, such as hospitality and travel, which have been hit hard by the COVID-19 pandemic. However, there are concerns that the government may choose to use the extra funds to pay down the national debt, rather than investing in economic growth. The upcoming budget is expected to be a key event for the UK as it looks to recover from the pandemic, and there will be close scrutiny of the government’s plans for spending and revenue.
In reality, the new changes, depending on how much you earn, might not make a dramatic difference to what is in your pocket but every bit counts. What is more damaging is that they set a prevailing wind and sense amongst new entrepreneurs and those who yearn to be entrepreneurs that the government is not supporting business owners. Starting and running your own business feels like a giant leap and if you feel that you will be without support and the tides may turn against you then that could be enough to put you off altogether and send you straight back to the corporate world or a 9 – 5.
What worries me is that the changes could prevent new businesses from being formed as many people will have second thoughts about tapping into their entrepreneurial spirit. The chancellor shouldn’t forget that growth in self-employment has driven our labour market in recent years and these changes are sure to put small businesses at risk.
What is the current budget deficit?
The current UK Budget Deficit is the amount by which the government’s spending exceeds its revenue in a given fiscal year. The most recent figures from the Office for Budget Responsibility (OBR) estimate that the UK’s budget deficit for the 2021/22 fiscal year will be around £234 billion. This is largely due to the government’s spending in response to the COVID-19 pandemic, which has included support for businesses, workers, and the healthcare system.
While the deficit is currently high, it is important to note that it is a temporary measure to support the economy during a difficult time. Over the long term, the government will need to address the deficit through a combination of spending cuts, tax increases, and economic growth. The budget is an important opportunity for the government to set out its plans for addressing the deficit in the years ahead.
So what are the main changes in the budget that will affect SMEs?
It’s difficult to say exactly how the new budget will affect SMEs, as the details of the budget have not yet been announced. However, there are several areas that could have an impact on small businesses.
One of the key areas to watch will be changes to tax policy, as this could affect the bottom line for many SMEs. For example, there has been speculation that the government may increase the rate of corporation tax to help address the budget deficit. This could have a significant impact on small businesses, especially those that are already struggling due to the COVID-19 pandemic. Another area to watch will be support for sectors that have been hit hard by the pandemic, such as hospitality and travel. If the government provides additional support for these sectors, it could help small businesses that operate in these areas.
Finally, there may be opportunities for SMEs to benefit from new infrastructure projects or other government initiatives, which could create new markets and opportunities for growth. Overall, the budget will be an important event for SMEs to watch, as it could have a significant impact on their operations and profitability.
Final thoughts on this year’s budget
Every day I see first-hand how tough life is for many small businesses in the UK, and I also see how many people are so close to making their dreams a reality but a lack of finance stands in the way. As their incomes and wealth are chipped away, people will have to be mentally stronger than ever to take the leap of faith.
We’ll have to wait and see what is announced regarding the UK budget for 2023. We may get some surprises…
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Matt Haycox is a self-made entrepreneur who began his career revitalising a family uniform business. Despite experiencing bankruptcy during the 2008 financial crisis, he rebounded strongly. Today, he is a serial investor and lender, having invested in over 30 businesses and provided £500m of funding to UK businesses. His journey has transformed him from borrower to lender, and from operator to advisor, using his experience to assist other businesses and entrepreneurs
In today’s competitive business environment, securing a business loan can be crucial for small and medium-sized enterprises (SMEs) looking to grow, expand, or navigate through
In today’s fast-moving business world, having quick access to funds can be a game-changer, whether it’s to grab a new opportunity or cover urgent expenses.
In the evolving landscape of work, the hybrid workplace has emerged as a powerful model, blending the flexibility of remote work with the collaboration of
Will SMEs Be the ‘Biggest Losers’ in The Next UK Budget?
When is the 2023 budget announced?
The next UK budget is due March 15th 2023.
It will be delivered by (chancellor Jeremy Hunt) and it is expected to be a crucial event for the country as it continues to navigate the economic fallout from the COVID-19 pandemic. The government has already announced several initiatives related to healthcare, education, housing, and infrastructure, and these are likely to be reflected in the budget breakdown. The budget is also expected to address the current UK budget deficit, which has grown significantly due to the pandemic.
Investors, businesses, and the general public will be closely watching the budget to see how the government plans to support the economy and promote growth in the coming years.
As I mentioned previously in my blog, Britain is a nation of entrepreneurs with many more yearning to start a business. Self-employment has grown a whopping 40% since 2000 and it looks like this number was set to reach a record 5 million by the end of the decade.
What is the UK Budget?
The UK Budget is an annual event where the Chancellor of the Exchequer presents the government’s plans for spending and revenue for the upcoming fiscal year. The budget sets out the government’s plans for taxation, spending, borrowing, and debt, and it is one of the most important financial events in the UK. The budget is usually presented in March or April each year and is closely watched by businesses, investors, and the general public.
What Will The March 2023 Budget Contain?
The UK government has revealed that borrowing in the current financial year is £30 billion less than predicted, which has led to speculation that the Chancellor of the Exchequer may have more room for manoeuvring in the upcoming budget. The figures show that borrowing for the year to date is at £54.5 billion, down from the predicted £84.7 billion, due to higher tax revenues and lower public spending.
The announcement has prompted calls for the government to use the extra money to support struggling sectors of the economy, such as hospitality and travel, which have been hit hard by the COVID-19 pandemic. However, there are concerns that the government may choose to use the extra funds to pay down the national debt, rather than investing in economic growth. The upcoming budget is expected to be a key event for the UK as it looks to recover from the pandemic, and there will be close scrutiny of the government’s plans for spending and revenue.
In reality, the new changes, depending on how much you earn, might not make a dramatic difference to what is in your pocket but every bit counts. What is more damaging is that they set a prevailing wind and sense amongst new entrepreneurs and those who yearn to be entrepreneurs that the government is not supporting business owners. Starting and running your own business feels like a giant leap and if you feel that you will be without support and the tides may turn against you then that could be enough to put you off altogether and send you straight back to the corporate world or a 9 – 5.
What worries me is that the changes could prevent new businesses from being formed as many people will have second thoughts about tapping into their entrepreneurial spirit. The chancellor shouldn’t forget that growth in self-employment has driven our labour market in recent years and these changes are sure to put small businesses at risk.
What is the current budget deficit?
The current UK Budget Deficit is the amount by which the government’s spending exceeds its revenue in a given fiscal year. The most recent figures from the Office for Budget Responsibility (OBR) estimate that the UK’s budget deficit for the 2021/22 fiscal year will be around £234 billion. This is largely due to the government’s spending in response to the COVID-19 pandemic, which has included support for businesses, workers, and the healthcare system.
While the deficit is currently high, it is important to note that it is a temporary measure to support the economy during a difficult time. Over the long term, the government will need to address the deficit through a combination of spending cuts, tax increases, and economic growth. The budget is an important opportunity for the government to set out its plans for addressing the deficit in the years ahead.
So what are the main changes in the budget that will affect SMEs?
It’s difficult to say exactly how the new budget will affect SMEs, as the details of the budget have not yet been announced. However, there are several areas that could have an impact on small businesses.
One of the key areas to watch will be changes to tax policy, as this could affect the bottom line for many SMEs. For example, there has been speculation that the government may increase the rate of corporation tax to help address the budget deficit. This could have a significant impact on small businesses, especially those that are already struggling due to the COVID-19 pandemic. Another area to watch will be support for sectors that have been hit hard by the pandemic, such as hospitality and travel. If the government provides additional support for these sectors, it could help small businesses that operate in these areas.
Finally, there may be opportunities for SMEs to benefit from new infrastructure projects or other government initiatives, which could create new markets and opportunities for growth. Overall, the budget will be an important event for SMEs to watch, as it could have a significant impact on their operations and profitability.
Final thoughts on this year’s budget
Every day I see first-hand how tough life is for many small businesses in the UK, and I also see how many people are so close to making their dreams a reality but a lack of finance stands in the way. As their incomes and wealth are chipped away, people will have to be mentally stronger than ever to take the leap of faith.
We’ll have to wait and see what is announced regarding the UK budget for 2023. We may get some surprises…
If you are a business owner looking for coaching, or investment or have a business opportunity# you’d like me to look at feel, free to get in touch and discuss the finer details.
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