He continues, “By making these two small changes we believe that a further £340million would be invested by the private sector and based on the number of additional businesses supported increasing their staff by just five each, we estimate that a further 1500 jobs can be created. And that’s just within the first year of investment with a multiplier effect in future years. We strongly encourage the Chancellor to make these changes in the forthcoming budget.”
A Balancing Act with Political Consequences
The budget on March 3rd will probably have more eyes on it than any usual speech about beer and cigarettes. It is fair to say that the Government have taken unprecedented steps in supporting as many small businesses as possible during the pandemic and now there is light at the end of the tunnel, business owners are thinking more about the future.
Most small business owners understand that there is now a real hole in the public finances at a time where they thought they would be coming out of a more ‘prudent’ public spending regime. But, it is also fair to say that small businesses have over many years been frustrated at the support lent to what they consider larger businesses and an inefficiency of collecting what is at least fair for the public purse.
As Rishi Sunak stands at the dispatch box in less than a weeks time, he must consider a balance between filling that huge hole and allowing UK small businesses to be the shining lights out of the economic gloom. Otherwise, as much as we’ll remember this past year for the rest of our lives, small business owners will remember his speech at the dispatch box when it comes to the ballot box in a few years time.