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

could a cyber attack bring down the energy grid?

Could a cyber attack bring down the energy grid?

On Friday October 21st, people tried to log on to Twitter. The site was down. Cyber hackers had crashed the wo...

Read More
in depth: how long would electricity last in a zombie apocalypse?

In Depth: Electricity in a zombie apocalpyse

This is a companion piece to our Zombie Apocalypse Infographic, where we investigate how long energy will last...

Read More

How long would electricity last in a zombie apocalypse? [Infographic]

Ever wondered how long electricity would last if The Walking Dead became a reality? This infographic has the a...

Read More
Excellent, 9.4 / 10

Competent and courteous service.

"Marie was knowledgeable and helpful. I feel able to recommend the service given without reservation. David Slesenger"

This review was posted by David Slesenger on the 16th of August 2016

Good service

"Nadia was very helpful"

This review was posted by Robin on the 16th of August 2016

Excellent Customer Service *****

"Jonathan Burgess is an asset to Switch My Business. He made me feel at ease and was more than helpful at all times. He made regular contact and guided me through the whole process which made switching a breeze. I just wish there were more customer service advisers like Jonathon whose friendly and happy demeanour make your day a much nicer one. Well done Switch my business and more importantly thank you Jonathon for all your hard work! Maria Owen Lodgecrest"

This review was posted by Maria Owen on the 17th of August 2016


"I totally agree with a customer maria owen,Jonathan Burgess was such a pleasure dealing with and is truly a asset to the company, he made it very easy to switch my electricity companies, Jonathan Burgess was very helpful, easy to talk to it was like talking to a friend not just a customer adviser. I would definitely recommend switchmybusiness and try get hold off Jonathan Burgess if possible and have the same excellent service as I did. Rajan Shanan"

This review was posted by Rajan Shanan on the 19th of August 2016

Excellent and very helpful

"Arron who dealt with my switch of energy and gas has been a huge help and extremely efficienct and easy to deal with. Despite British Gas throwing obstacles in the way at every turn he has doggedly stuck to his task and saved the day. Thanks Arron."

This review was posted by Rod Pryce-Jones on the 19th of August 2016