Bobby Lane, leading advisor to SMEs and partner at accountancy firm Shelley Stock Hutter LLP, gives his thoughts on the Budget:
 
"In some ways this budget recognised the need to support the entrepreneurial flair of UK’s start-ups and SMEs. This Budget also heralds positive changes for entrepreneurs such as the increase in Entrepreneurs’ relief from £2m to £5m. However, we should remember that up until a few years ago this was unlimited. The reduction in corporation tax will go some way to help the 5million SMEs in the country. This means smaller businesses get an extra 1% of profits - this will not help those starting up or already struggling. The increase in the personal allowance means staff can earn an extra £1,000 tax free.
 
“However many start-ups, particularly those in London and the South East of England will be left out in the cold. Yes, the National Insurance holiday will be of tremendous support to many regional start-ups and SMEs, but why was this not fully inclusive for all businesses in Britain? Whilst the extension of the EFG scheme is good news, the bank levy will do little to encourage banks to lend to small businesses. The 20% VAT rate from next January will also mean the many small businesses unable to reclaim VAT will face higher costs. The reduction in rates of capital allowances and the severe drop in the annual investment allowance will also hurt. Let’s hope the Chancellor and his team at the Treasury start to think of more ways to help inject new life for our start-ups and help SMEs back on the road to recovery.”
 
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