The new coalition Government – what will it mean for SMEs?

The new coalition Government – what will it mean for SMEs?

In these revolutionary times for British politics, the eyes of every business have been turned to Westminster and our new coalition Government in anticipation of how future policy will affect the lifeblood of Britain – the small to medium enterprise business sector.

Without a single clear political party in rule, it’s been unclear since those ballot results came in as to what this will really mean to the way we run our businesses and as to whether this will create a true end to the recession – or whether uncertainty will extend financial insecurity. These are questions which won’t be answered quickly:- and it’s the role of every business owner and manager to keep a close eye on political development over the next few months to assess how changes will impact upon their particular business sector and region.

New Small Business Minister to bring in positive change?

So what do we know so far? Significantly for the SME sector, we’ve seen the appointment of Conservative politician Mark Prisk as the new Small Business Minister. Prior to the election, Prisk went on record as saying that the Conservatives would scrap the existing Business Link system to replace it with a network of ‘enterprise agencies’ to be funded by chambers of commerce, the government and local councils. However, as Mark Prisk will now be reporting directly to Liberal Democrat Vince Cable, will this Conservative endeavour actually happen – and if Prisk does push this initiative through, what would it mean for SMEs?

Mark Prisk believes that Business Link is failing in its task, with only a small proportion of businesses actually using the service, and those that do being dissatisfied with the help and support they receive. He’s looking to bring in ‘face to face’ business support which understands the needs of the locality.

Other initiatives declared by Prisk prior to the election included the abolishment of current clauses in council and housing association tenancy agreements, preventing business start-ups from the premises, and a programme called ‘Work for Yourself’ – providing a weekly allowance for budding entrepreneurs to start up their businesses.

In addition, Prisk determined that the tax system must be simplified for small businesses – an assertion we’re beginning to see come to life with the recent changes to EU accounting rules, allowing member countries to exempt small businesses from drawing up annual accounts. Will Britain sign up too?

Emergency Budget called for 22 June 2010

The Treasury confirmed this week that an Emergency Budget will take place on 22 June, which is likely to be the starting point where SMEs begin to see the first real outcome of policy change. According to new Chancellor George Osborne, the Emergency Budget is expected to include measures to ’boost enterprise, create a fairer tax system and demonstrate to the world that Britain is open for business.’

So all eyes of the business community are on 22^nd June 2010 – and the budding relationship between Mark Prisk and Vince Cable. Let’s hope it signals the winds of change for business growth.

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