November 22, 2017

Autumn Budget 2017: Snapshot for SMEs

This Autumn Budget was widely trailed as the trickiest to be delivered in a generation.

Slowing economic growth, a longstanding commitment to deficit reduction, Brexit uncertainty and rapid technological change all combined to give the Chancellor Philip Hammond very little room to manoeuvre.

But in an hour-long speech that will contain a great deal of small print, there were some positive headline announcements for SMEs along with key legislative changes.

Here’s our five picks hot-off-the-press:

1. Changes to National Living Wage and Personal Allowance

The National Living Wage will rise by 4.4% in April 2018 to £7.83, up from £7.50 today. In addition, the tax-free personal allowance will rise to £11,850 at the same time alongside a rise in the higher-rate tax threshold to £46,350.

2. Fuel Duty and VAT Threshold Freeze

If this feels like déjà vu, then don’t worry – you’re right. The Chancellor announced a further year’s freeze to Fuel Duty in a repeat of the same break offered last year.

The VAT threshold – the level of earnings over which businesses must pay VAT – has stayed the same at £85,000.

This is considered an easy win by commentators.

3. Changes to Business Rates

The Chancellor announced a couple of key changes to Business Rates:

  1. A switch to calculating rates based on the Consumer Price Index (CPI) rather than the present Retail Price Index (RPI), providing £2.3bn in relief worth £418.18 to each of the UK’s 5.5m SMEs
  2. A switch to revaluing rates every three years rather than every five

4. Investment in Infrastructure

Lots of new and reannounced spending for infrastructure in this budget from Philip Hammond, including a second devolution deal for Andy Street’s Midlands Engine, a £1.7bn transport fund to be spent by city mayors, and £500m for 5G and fibre broadband.

5. Tackling the UK’s Productivity Gap

After conceding that UK productivity has flatlined since the Great Recession(see above), the Chancellor announced a range of spending measures to tackle the problem, including a £2.5bn investment fund for UK ‘scale-up’ businesses available through the British Business Bank as well as infrastructure and education investment.

Learn more

While this gives us a snapshot of key announcements for SMEs, we’ll be looking at what they mean for businesses in-depth – and with a particular attention on payroll requirements – in our special budget webinar:


Share this article

About the author

Stuart Clough

About the author

Stuart Clough

Stuart (MCIPR) is a trained journalist, writer and marketer with ten years' experience in B2B, public sector and employee communications. A former marketing consultant and agency client-lead, Stuart is responsible for communications and content at Moorepay.

Related Posts

coronavirus job retention scheme faqs
FAQs: Coronavirus Job Retention Scheme (Updates)

FAQs: The Coronavirus Job Retention Scheme and Beyond (Updates) Q: How is the Coronavirus Job…

View Post
job support scheme
The New Job Support Scheme: Explained

On 24th September, Chancellor Rishi Sunak revealed his Winter Economy Plan to help Britain’s workforce…

View Post
work from home if you can
“Work From Home if You Can”: How The Update Affects Your Business

New measures are to come into force in the UK to reduce the dramatic increase…

View Post

Making payroll & HR easy