The wonderful wefinda weekly small business news - June 28th

Top of the agenda for the week has to be the Budget.  By now most of us have read and calculated how the change in tax, personal allowances and VAT will affect us as individuals.  However at Wefinda we are more interested in what the budget means to businesses.  Whilst we are not corporate tax accountants and will leave the number crunching to those who are, there are a few headlines that caught our eye.

Headline number one is that the CBI approves of the measures taken in the budget.  The CBI Director General, Richard Lambert, commentated that "There was clear recognition in the Budget of the role that business needs to play in getting the economy back into shape, and generating the jobs and wealth needed to sustain economic recovery.”

The realignment of corporation tax has to star at the top of the good news tree.  With the main tax, currently at 28%, being cut by 1% next year with three further annual cuts of 1%, and with small business corporation tax being reduced from 21% to 20%, this  gives a strong signal that the government is looking to business to drive forward economic recovery.

Small businesses win out in a number of ways including the cutting of business rates so that 345,000 businesses will pay no rates at all and incentives for new businesses which are set up outside of London and the South.  Businesses looking to invest and grow will also benefit from the doubling of the annual investment allowance to £100,000 and an increase in lending to small businesses by Lloyds and the Royal Bank of Scotland.

 The sting in the tail for all businesses is the increase in VAT to 20% from 4 January 2011.  Whilst the experts disagree on how much this will affect spending, all businesses will face the hidden costs relating to the change in their pricing and accounting systems. 

Elsewhere in the news, Defra have announced the awarding of contracts to six companies to carry out technical feasibility studies into developing more energy efficient lighting in homes.  The contracts have been awarded through the Small Business Research Initiative which regularly runs competitions that result in research contracts.  For more information see http://www.innovateuk.org/deliveringinnovation/smallbusinessresearchinitiative.ashx

 So what do we have to look forward to?  At the beginning of the week we can expect to see the formal announcement following the G20 summit held in Toronto over the weekend.  In the EU we have a conference on how technology can benefit the Health sector as well as workshops and debates on subjects as diverse as primary care and cable TV receivers in the 800mhz band.

In Parliament, look for the conclusion of the Budget debate on Monday together with a statement on Limits on Non-EU Economic Migration.  On Wednesday there is a debate on energy efficiency whilst on Thursday Parliament continues the energy theme with questions on energy and climate change.

Elsewhere, on the 30 June the Law society is holding a debate to discuss proposals for cutting the cost of civil litigation, something that may affect all businesses at some time.

And finally, if Wefinda has helped your business to grow and you now have some spare cash to invest, how about buying a village in New Zealand.  The whole village including hotel/pub, school, railway station and 16 houses is on the market for one million New Zealand dollars.  You even get 40 residents thrown in to the bargain.