Our round up of the headlines we’re most concerned with from the Spring Statement 2018:
1. The Chancellor is focusing on the reduction (as a percentage of income) of debt, although the overall level of actual debt is growing. This mirrors what has happened in individuals lives where having being burnt by high debt commitments in times of recessions, many have vowed not to go there again and have actively sought to reduce their debt exposure. In a business context, the trade off between debt reduction is often at the expense of reinvestment into infrastructure or foregoing potential opportunities both of which have a long term detrimental effect on a business so any debt reduction strategy needs to be well thought through.
We work with businesses to ensure their cashflow reporting is in place and supports the aspirations of the owners.
2. Helping the white van man go green – New tax breaks are being offered for low polluting commercial vehicles which are a welcome sign to many business owners. However, the issue may be two fold;
These will be available on new vehicles which may be too expensive for many businesses
There may be a lack of availability until the manufacturers assess then catch up with demand
We work with the white van man to assess whether the tax tail is wagging the dog or whether this is a genuine tax saving opportunity.
3. Business rates – The government has committed to reviewing business rates tri-annually which could mean that things will get expensive in traditional High Streets or other such high value places. We expect to see businesses looking at alternative working models such as home working, limited time in the office, virtual hubs and networks which are not without their challenges but also opportunities.
We work with businesses to help them optimise their teams in delivering in this new operating environment which works quite differently to a traditional fixed premises model.
If you have any questions regarding the above and how this will affect your business then please contact the office on 01302 752700