Preparing for the Spring budget

The PIF owl standing on the steps of 11 Downing Street

Preparing for the Spring budget

On the 6th of March 2024 Chancellor Jeremy Hunt will bring forward his second Spring Budget, and with it comes a flurry of speculation and anticipation. For small and medium-sized enterprises (SMEs), the Budget is a key event, offering a chance to see how the government plans to support and stimulate their growth.

In this blog, we’ll look at what SMEs can expect from the upcoming Spring Budget, and how they can prepare to make the most of it. Preparation is key throughout the year, especially when the UK market is facing an insolvency high like never before.

What’s on the agenda?

Potential Tax Cuts:

Income Tax or National Insurance: A key focus point is likely to be tax cuts, potentially in income tax or national insurance contributions. Hunt has already hinted at this, and it could be a way to boost the Conservative Party’s popularity ahead of a potential general election later this year. However, public opinion favours prioritizing public services over tax cuts, so the exact form and extent of any reductions remain uncertain.

Other Potential Cuts: Depending on the fiscal situation, further tax cuts like raising the child benefit threshold or reducing inheritance tax might be on the table.

Balancing Growth and Public Services:

Economic Growth: Hunt’s stated priority is to “drive economic growth,” as he believes it will eventually generate the revenue needed for public services. He might announce measures to incentivize businesses and investments.

Public Spending: While tax cuts are expected, maintaining essential public services will be crucial. The budget might address concerns about healthcare, education, and infrastructure, though balancing these demands with fiscal constraints will be a challenge.

 

How can SMEs prepare?

While the specifics of the Budget remain under wraps, there are a few things that SMEs can do to prepare:

  • Stay informed: Keep up-to-date with the latest news and developments on the Budget. This will aid you to understand what to expect and how it might impact your business.
  • Review your finances: Take time to review your finances and identify any areas where you could improve. This could involve making sure you’re claiming all the tax reliefs and allowances that you’re entitled to, or looking for ways to reduce your costs.
  • Plan for growth: If you’re looking to grow your business in the coming year. Start planning your growth strategy now, so that you’re ready to hit the ground running when the Budget is announced.

The Spring Budget is an important event for SMEs, and it’s worth taking the time to prepare for it. By staying informed, reviewing your finances, and planning for growth, you can make sure that your business is well-positioned to take advantage of any opportunities that the Budget may present.

 

Three more tips

Here are three more tips to help you get the most out of changes coming our way –

Build strong relationships with your suppliers: Having strong relationships with your suppliers can help you to negotiate better deals and terms. This can be especially important in the current economic climate.

Invest in your people: Your employees are your most valuable resource. Investing in their training and development will pay dividends in the long run.

Consider invoice finance: Invoice finance can be a valuable tool for SMEs looking to improve their cash flow. If you’re not already using invoice finance, it’s worth exploring whether it could be right for your business.

Join the us in preparation

Here at Partnership Invoice Finance, we prefer to lead with a human touch. We welcome you to join the conversation by connecting with us on LinkedIn here. We’re also available by phone and email, you can find out contact information here.

Our services include recourse factoring, and disclosed invoice discounting. With both of our services you can receive up to 80% funding on your invoices, and customer service like you’ve never experienced before.

Contact us today to find out what funding you could receive – and we can prepare together.