2020 Budget: What does it mean for small businesses?
Yesterday’s news from the 2020 Budget has given small businesses the confidence they need to take their business strategies to the next level.
The biggest impact for small businesses is the ‘tax holiday’ that will be granted to firms including, but not limited to shops, restaurants, bars and hotels with a rateable value of less than £51,000. This ‘tax holiday’ means that tens of thousands of England’s retail, leisure and hospitality businesses will not pay any business rates in the coming year.
Additionally, small businesses that pay no business rates will be eligible for a £3,000 cash grant, worth a Government funding pot totalling £3bn. As part of the “Coronavirus Business Interruption Loan Scheme”, the government will guarantee bank loans to small businesses on amounts of up to £1.2m and will cover bank losses of up to 80%.
What does this mean for your business?
For many years, small businesses in the UK have campaigned to reform business rates with many arguing that it makes it hard for bricks and mortar retailers to compete with online rivals. By addressing this, the Government has ensured that small businesses will have the financial support to continue to operate, meet customer expectations and confidently grow their business.
As well as addressing this, these measures are part of the government’s effort to support the UK economy in the face of the disruption from the coronavirus outbreak.
This news is encouraging for small businesses in all sectors, from local high-street retailers and sole traders, to bar, cafe and restaurant owners.
How can you find out what your business is eligible for?
The government’s Business Rates Calculator enables small businesses to easily understand how they can benefit from the 2020 Budget and what grants and loans may now be available.
