FSB hails Budget 2016 for Britain's small businesses

18th March 2016 | News

The Federation of Small Businesses (FSB) has responded to Chancellor, George Osborne’s Budget 2016 speech, claiming it contained many sizeable wins for the UK’s small business community.

FSB members have campaigned long and hard to make Small Business Rates Relief a permanent fixture and expand it further, so the news that it would be more than doubled permanently was no doubt a big win.

Mike Cherry, policy director, FSB, felt the measures announced on business rates – the single biggest tax cut in Wednesday’s Budget – would be a key step towards fundamental reform.

Mr Cherry was also enthused that the Government had listened to calls for a simpler tax system for small businesses and the self-employed.

“In a Budget constrained by both the need to reduce the deficit and the economic outlook, the Chancellor has listened to our calls for the tax system to be made simpler for small businesses and the self-employed and taken important action on business rates,” said Cherry.

“In particular, FSB members have campaigned hard to make Small Business Rates Relief permanent, and expand it – and the Chancellor has heeded our calls, taking many small firms out of the system altogether.

“The combined measures announced on business rates – the single biggest tax cut in the Budget – will be viewed by our members as a welcome and important step on the road to fundamental reform. In addition, online retailers will benefit from steps to secure a level playing field for smaller online businesses on VAT.

“Freezing fuel duty will be universally welcomed by small businesses right across the country.

“Furthermore, the new devolution deals, alongside increased investment in roads, rail, and flood defences, should give a much needed boost to the UK’s infrastructure.

“Altogether, these measures should help to drive productivity and boost small business confidence levels, which have faltered recently in the face of a number of domestic policy and global economic challenges.”

For a comprehensive summary of the Budget 2016 for small businesses and taxpayers, take some time to read our full report here.