Contributed by Bruton
30/08/2019 - Bruton
The Government’s plan to suspend Parliament has dominated the news cycle since the announcement on Wednesday, with a significant amount of controversy arising and much criticism levelled at the Prime Minister. However a much overlooked aspect is the potential this break, and subsequent Queen’s speech, will have to provide a boost to the UK’s community of investors and small businesses.
Considering the optimism that has so far characterised Boris Johnson’s premiership, it is not hard to imagine that he will use the Queen’s speech to announce a wide range of measures designed to encourage growth. This ranges from potential cuts to Corporation tax to increase tax efficiencies for investors using Government institutions such as the Enterprise Investment Scheme (EIS).
Potential announcements that could encourage SME investment and growth:
• Cuts to corporation tax
• Extension of the scope of EIS
• Greater tax efficiencies for small business investors
• Extension of the Business Angel Co-Investment Fund
• Further availability to the Venture Capital Trust Scheme
• Creation of funds such as The Start-up Loan programme
Luke Davis – CEO of IW Capital offers his reasons to be positive for investors and SMEs:
“We have seen a lot of speculation about Boris’ plans to support business in the UK and how he will ensure that the economy grows after Brexit. This looks like the precursor to a major announcement that could potentially be great for investors and small businesses in the UK. Cuts to corporation tax and possible extensions to the tax efficiencies available through EIS could be used to stimulate the growth of SMEs and encourage investors to support early-stage businesses with the potential for huge growth. It is likely that tax cuts or incentives designed for this purpose will be more than made up for by increased revenues from job creation, exports and the innovations these small businesses often provide.”
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