Written by: Keith Tully
Published: 5th June 2017
Unprecedented challenges lay ahead for the next elected party, not least of which is the provision of a secure base from which UK businesses can thrive. So firstly, how would the Conservative manifesto affect businesses and the economy if the party was re-elected?
The Conservative government plans to retain the current rate of corporation tax at 19% until the financial year commencing April 2020, when it would be reduced to 17%. They also want to simplify the current tax system for small businesses and the self-employed.
Listed companies will need to publish the ratio between chief executive and average pay as part of their annual reporting duties. Shareholders will also have strict voting rights to sanction executive pay deals.
Smaller businesses will be offered protection by ensuring large contractors abide by the Prompt Payment Code, both on government contracts and in the private sector.
The Tories are planning a full review of the business rates system to ensure fairness, and to address the current problems. This would include the introduction of more frequent revaluations, and the potential for self-assessment within the valuation process.
Labour’s manifesto, entitled “For the Many, Not the Few,” includes significant changes in relation to businesses and the economy.
Labour will ignore the planned schedule laid out by the Tory government, intending to reverse many of the corporation tax cuts introduced over recent years. The main rate of corporation tax would rise steadily to 26% by 2020/21.
Smaller limited companies with annual profits under £300,000 would be offered protection from these rises following re-establishment of the small profits rate of 20% in 2018/19, and 21% in 2020/21.
Small businesses with a turnover of less than £85,000 would be excluded from the obligation to provide quarterly reports.
Labour has stated their intention to clamp down on late payments within the public and private sectors, by:
The National Investment Bank and regional development banks will be charged with proactively identifying funding gaps, meeting the needs of businesses unable to secure finance via ‘traditional’ banking routes.
Labour wants to introduce changes to the business rates system, including:
Labour intends to:
Our experts at Real Business Rescue are available to provide more information on how your business may be affected following the General Election. Your initial consultation is free-of-charge, and we operate from 46 offices around the country.