How much could your business save? Find out now!
Or, you can call us on: 0800 411 8830

Autumn Statement 2015: predictions for UK SMEs


What does the autumn 2015 five-year spending review hold for UK SMEs? We offer some predictions.

The most obvious area to begin when making predictions is the hunt for £20 billion of cuts in public spending by 2015. Business support and local government are both areas of focus, with likely ramifications for small to medium sized businesses.

The need for additional funding for the NHS and counter-terrorism – combined with lower than expected tax incomes – will likely make cuts elsewhere more severe.

  • The Department for Business Innovation and Skills (BIS) will probably suffer significant cuts. Those businesses reliant on apprenticeships and skills coming from further education could be impacted as these areas are cut. A leaked consultation on the future of the Department for Business, Innovation and Skills suggests that November’s spending review will be accompanied by a radical overhaul of the research funding system.
  • Local Government services will also be hit: less frequent bin collection may affect some businesses, fewer street lights may discourage customers of others. Public transport for some areas may also be reduced as local bus routes lose funding (zero-rated VAT for transport such as bus and coach journeys loses the Government £4.5 billion every year), potentially affecting both customers and staff.
  • Taxes are an uncertain area. Previously Tory form would suggest a preference for lessening the tax burden or at least not increasing it. But the need to spend in other priority areas of health and security could see taxes rise. A Tory manifesto pledge means income tax, VAT and national insurance are off-limits before 2020
  • Other cuts could impact a variety of areas relevant to SMEs, such as the ‘employer-supported child care’, including vouchers, which costs the Government £390 million. Company mobile phones are among the small but potentially numerous increased expenses for SMEs.

On the positive side, help with dealing with the minimum wage has been hinted for the care sector. And businesses outside of London may be cheered by greater devolution, especially for the co-called Northern Powerhouse.

The outcome of a business rates review from earlier in the year has yet to be revealed so an update – for better or for worse ­– is certainly possible.

The Federation for Small Businesses (FSB) has called for help to cope with adjustment for National Living Wage, automatic enrolment into pensions and changes to tax on dividends.

Still, most predict a conservative update.

Related Articles

working from home

Can I have a business energy contract if I work from home?

The gig economy is showing no signs of slowing down and micro businesses are thriving, with 76% of UK business...

Read More
New design electricity pylon used in Nottingham

Energy News – 21/04/17

What with the announcement of a snap election and all the ensuing shenanigans it’s certainly not been a quie...

Read More
eco trees image

Earth Day Brainteaser – can you find the footprint?

Can you find the foot amongst the leaves? Challenge yourself with our brainteaser, created to celebrate Earth ...

Read More
Excellent, 9.7 / 10

Very easy

"Very easy. Bea Luseni very efficient & knowledgeable."

This review was posted by Alan Duffy on the 31st of March 2017

Super helpful and easy to work with

"Recommend this company in a heartbeat - Nicole Borneuf was super easy to talk to, was not pushy in the slightest, very helpful and replied with all my questions very professionally and did all she could to help. I had to deal with a few companies to sort my business energy out, all but Nicole were too pushy for my liking and I refused to follow through with them. Thank Nicole - you are a credit to your company, thank you for making the stressful energy change so easy."

This review was posted by Mia Drew on the 29th of March 2017

An Extremely Competent Company

"Switch my business has not only helped my SME secure a good energy deal for the second year running but Jessica swiftly found a alternative supplier for me when I was let down on the day of switching by the new contractual provider I had chosen some 4 months previously. Being suddenly out of contract and without provider is everyone's energy nightmare. Greatest thanks."

This review was posted by S McMillan on the 29th of March 2017

Helpful, friendly and we saved lots of money!

"Jessica Purnell was helpful and friendly, she made the whole process easy and simple AND we saved lots of money thanks Jess"

This review was posted by Melanie Baker on the 23rd of March 2017

Quick & Easy

"Kabibi was very helpful and the whole process was very efficient. The one small reservation I had was that I was phoned up by Kabibi almost immediately having received my online quote - which wasn't enough time for me to finish reading the quotes! Fortunately she was able to assist me in a greater savings on both Gas & Electricity, and so as long as the switchover is seamless I will remain very happy with the service."

This review was posted by Amanda Brown on the 21st of March 2017