Spring Statement delivers positive news for SMEs
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Welcome measures in the Chancellor's announcement included the decision to bring forward more frequent business rates revaluations and additional funding for apprenticeships.
In contrast to the speech he gave 12 months ago, the Chancellors Spring Statement announcement featured some positive steps, designed to "champion the job creators".
Firstly there was the news that the next business rates revaluation will take place in 2021, 12 months ahead of the previously scheduled 2022 date. The following revaluation will take place in 2024 in line with the new three-year time frame as announced in 2017's Autumn Budget.
Chief executive of the Association of Convenience Stores (ACS) James Lowman said: "Business rates are one of the biggest fixed costs for thousands of convenience retailers in the UK, many of which have seen significant increases in their rates bills as a result of the delayed last revaluation. We welcome the Chancellor's plans to bring forward more frequent revaluations to 2021 and VOA led assessment. We will continue to call on government to change the way that the business rates system deals with investment in stores. We need a business rates system that incentivises investment instead of discouraging it through higher rates bills."
Hammond also announced that up to £80m funding will be released to help small businesses hire apprentices.
Confirming the government's commitment to providing three million apprenticeship starts by 2020 through the apprenticeship levy, the chancellor announced that up to £80m funding will be released by the education secretary to support small businesses in hiring apprentices.
"We recognise the challenges the new [levy] system presents to some small business looking to employ an apprentice," Mr Hammond said.
"I can therefore announce today that the education secretary will release up to £80 million of funding to support small businesses in engaging apprentices."
A Treasury spokesperson however explained afterwards that this is "not new funding".
"It is not a new funding announcement. There were no new funding announcements in the spring statement," he said.
"It is from the existing DfE apprenticeship budget. I guess today will be the first time it has been publically announced in terms of where the money will be allocated, but it is funding that is awarded to providers to deliver training to businesses that don't pay the apprenticeship levy."
