With the General Election in the UK fast approaching on July 4th, Kyle Eaton, a business bank accounts expert from money.co.uk, has offered his insights on the promises made by the major political parties.
As small businesses face uncertainty during election periods, it is crucial to understand the potential impacts of new policies on existing regulations and future prospects.
While global issues remain uncertain, there is optimism for small businesses with decreasing inflation rates and talks of a possible base rate reduction by the Bank of England.
Analysis of Manifestos for Small Businesses
Let’s delve into what the main political parties propose for small businesses if they come into power:
Conservative Party
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The Conservatives have outlined a £4.3bn support package and a ten-point plan to assist SMEs. They aim to maintain current corporation tax levels and eliminate the main rate of National Insurance for around 4 million self-employed individuals.
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They also plan to ease the burden of business rates for high street establishments and review the VAT threshold, potentially benefiting more medium-sized enterprises.
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Retaining funding schemes like EIS and SEIS and enhancing access to government contracts are also part of their agenda.
Labour Party
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The Labour Party prioritizes wealth creation and promises support for small businesses, stating they are essential for local communities. They aim to maintain current tax rates and reform procurement rules to offer more government contract opportunities.
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Their focus also includes tackling late payments, improving access to capital, and creating a fairer system for high street and online retailers.
Liberal Democrats, Green Party & Reform UK
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The Liberal Democrats advocate for a stable business environment, emphasizing smarter regulation and investment in key areas. They also aim to establish a local banking sector for small businesses.
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The Green Party proposes regional mutual banks and significant funding for businesses to decarbonize.
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Lastly, Reform UK pledges various tax reforms and increases in thresholds to support businesses.
The parties’ pledges aim to attract small business owners with promising policies.
Practical Steps for Businesses to Prepare for the General Election
To navigate the upcoming general election effectively, consider the following steps:
Stay Informed
Keeping abreast of election news and policy changes can help anticipate potential impacts on your business.
Engage with Business Associations
Joining business associations and voicing concerns through them can amplify your voice and address shared challenges.
Plan Ahead
Develop contingency plans for different election outcomes, focusing on potential policy changes affecting your business.
Financial Review
Ensure your financial affairs are in order, reviewing cash flow, credit, and debts to prepare for potential changes.
Communicate with Customers
Understand customer sentiment during uncertain times and adjust your strategies accordingly, while maintaining a neutral stance.