All eyes will be on Prime Minister Liz Truss’s government when it delivers its emergency mini-budget tomorrow, aimed at helping individuals and businesses cope with the current cost of living crisis and rising inflation. Chancellor of the Exchequer, Kwasi Kwarteng, is expected to announce £30 billion of tax cuts and Business Secretary, Jacob Rees-Mogg, is expected to set out details of the Government’s plan to help businesses through the energy crisis.
Research conducted by wealth management and professional services group Evelyn Partners*, highlights the measures UK business owners with turnovers of £5m upwards are most keen to see introduced on Friday.
While there has been much discussion surrounding the need for support to directly address energy bills, a measure announced by Liz Truss earlier this month, it may be surprising to learn that energy bill support is not top of the wish list.
While a sizeable number will welcome the Government’s energy bill package (23%), business owners are in fact most keen to see the introduction of a government loan scheme, with one in four (24%) business owners citing this as the top measure they’re keen for the Government to introduce. The need for broad financial support indicates that the problems UK firms are set to face this winter go beyond just funding energy bills.
With tax cuts for businesses on the cards, the research highlights which cuts business owners would be most in favour of. A reform of business rates is supported by one in five (21%) business owners, however VAT cuts, fuel duty cuts and national insurance cuts are proving less popular.
Measures UK business owners would most strongly support the Government introducing:
Government loan scheme 24%
Energy cost support 23%
Government grant scheme 22%
Reform of business rates 21%
Import/export duty cuts 20%
Corporation tax cut 15%
National insurance cut 14%
Fuel duty cut 14%
VAT cut 11%
Ami Jack, Partner at Evelyn Partners comments: “UK business owners are undoubtedly concerned about the coming 12 months, with inflation, the cost of living crisis and a potential recession all providing a challenging backdrop for businesses to operate in.
“While much has been made of business owners’ need for support to keep energy bills low this winter, our research shows UK firms are seeking broader financial support from the Government, indicating that the challenges businesses are facing go beyond rising energy prices. Liz Truss has already made several big tax pledges, including cancelling the increase in corporation tax rates; but even if these changes are confirmed on Friday, reducing the tax burden may not provide all of the relief businesses are hoping for. For now, we must wait and see what the Chancellor will deliver at the dispatch box on Friday, and the extent to which the UK Government can fulfil UK business owners’ wish list.
“While tax cuts and pay-outs will no doubt go some way to alleviate business owners’ concerns as we head into winter, it’s important that businesses look to all forms of support as they navigate this period. This includes maximising reliefs and incentives to which they are entitled. Advice from experts that understand you and your business will prove invaluable in the coming months, and can enable business owners’ to fully assess all options, equipping them to negotiate these challenging conditions.”
*Research commissioned by Evelyn Partners, conducted through an online survey by Opinium between 5th to 14th September 2022 of 501 business owners of UK companies with a turnover of £5m upwards.
