The results of the 2015 Election were a surprise to many, with the Conservatives securing a majority despite many forecasts and opinion polls predicting another hung parliament. What does the result mean for businesses in the UK, and how can you plan accordingly to ensure continued growth?
The Conservatives’ victory has a number of implications for businesses. The Party’s Small Business Manifesto, announced on the 27 April 2015, states that the Party will:
- Oppose any increases to Corporation Tax
- Keep the Employment Allowance until 2020
- Abolish NICs on employees under 21
- Set a higher, permanent level for the Annual Investment Allowance
- Launch the ‘Help to Grow’ scheme
- Treble the number of Start Up Loans to 75,000
- Boost support for first-time exporters
- Cut a further £10 billion of red tape
In response to these policies, here are some areas for you to consider for your overall business strategy:
Hiring New Staff Members
If you are thinking of hiring additional staff, note that from 6 April 2015 employees will no longer have to pay Class 1 secondary National Insurance Contributions (NICs) for employees under 21. If you are looking to employ young members of staff, ensure your employment proposition is compelling to this age-group in order to attract the best talent.
Selling to International Markets
The First Time Exporters (FTE) initiative was announced on 18th May 2015. The FTE is a package of support (including training and advice) for businesses looking to expand into overseas markets for the first time. If you believe your business has the potential to expand into international markets, please speak to us for further information.
Starting a New Business
Thinking of starting a new business venture? The Conservatives state that they aim to increase the number of business start-ups to 600,000 by the end of the current Parliament. To facilitate this growth, they have pledged an increase in the number of Start Up Loans to 75,000. If you are thinking about starting a new business, please talk to us about our New Business Kit, which provides guidance relating to the financial, tax and accounting considerations of launching a new business.