How Will the Snap Election Result Affect Small Businesses?
Everybody wants to know how election results will affect them. And that’s no different for small business owners. It’s important to know what’s in store so you can plan properly for the future – both short and long-term. With the 2017 general election results now in, this post explores what the outcome could mean for small businesses.
The ‘small business vote’
Appealing to small businesses has become an essential part of political campaigning in modern day Britain. According to the Federation of Small Businesses, they make up for 99.3 percent of the private sector and – along with medium sized enterprises – employ nearly 16 million people. It’s fair to say they’re important to the country, which is why political parties try to target them with their policies.
Weighing things up
With that in mind, it’s worth looking at what the main parties said when it comes to small businesses in 2017. While Labour pledged to increase corporation tax to 26% over the course of the next few years, they made clear that small businesses would only see a 2% increase to 21%. They also wanted to review business rates to help small businesses, protect SME funding for apprentices and crack down on late payments from bigger companies.
On the flipside, the Conservatives’ pledged to continue their reduction of corporation tax to 17% by 2020. Their manifesto also included doubling the Immigration Skills Charge to £2000 per year, making it more difficult for small businesses to employ non-EU workers. They too suggested they would discourage late payments, with both parties putting free trade deals at the centre of their Brexit plans, though the Conservatives wish to do so without access to the single trade market.
The problem with the result
So, the Conservatives got the most votes and the most seats at the election. The problem? They didn’t get the 326 seats required for a majority government. This leaves the UK in limbo to some extent. And such an uncertain situation could see the UK currency suffer in the short term.
On a more long-term scale, things are less likely to change as much. Needing a coalition to get over the line, the Conservatives could be forced to compromise on some of their policies. Things like the Brexit deal, austerity cuts and changes to taxation could be softened to strike a deal with another party. However, looking slightly further into the future, the instability of a coalition or minority government could even lead to another election.
Suring things up
At times of uncertainty, it’s important to have experience and expertise on your side. UWM Accountants are a team of cloud accounting experts based in Leeds with over 30 years’ experience helping businesses across the UK. With a range of accounting services and business planning services, we can give your business exactly what it needs to grow and thrive in an ever-changing corporate landscape. Get in touch online for more information on how we can help you.