The fall budget, the COP26 summit and the suspension of the interest rate hike – what does this mean for local businesses, asks Karl Lanham of Complete Commercial Finance

For many businesses, fall marks the last big push of the year and a chance to do business before the days end, but the big news for everyone in recent weeks has been the outlook for 2022 and beyond.

The Chancellor, world leaders and even the Bank of England have foreseen the problems that will affect us all in the months and years to come.

Chancellor Rishi Sunak presented his budget on October 27, which he says will strengthen the economy to rebuild the nation after the pandemic.

Karl Lanham (53282257)

Along with an increase in the national living wage and an overhaul of corporate tariffs, including a further 12-month relief for companies wishing to invest in their own premises, there has also been an extension of the increased rate of the annual allowance. investment (AIA).

Businesses can claim up to £ 1million in spending on AIA-eligible plant and machinery costs with a 130% super-deduction reducing their tax bill by up to 25p for every 1 pound sterling invested.

This allowance was supposed to expire on December 31, but will now continue until March 31, 2023.

Other ‘freebies’ were an extension of the payback loan scheme, allowing businesses to borrow up to £ 2million with 70% government backing until June 30, a tax freeze on the fuel and alcohol tax simplification – a decision most of us will make. a grateful glass to!

However, a 20% VAT hike is still scheduled for April 2022, a move many businesses will regret.

After the chancellor’s spending madness, there were many warnings at COP26, the United Nations conference on climate change in early November.

As we move towards a low-carbon economy, all businesses are under pressure to accelerate their path to net zero by 2050.

In our own region, Holkham Estate has already made a greater commitment to be carbon negative by 2040 and we are starting to see many more companies focusing on the sustainability of their operations.

Funding the required stage changes is a major challenge on the way ahead, and although the market is still driven by innovators, a growing number of lenders are offering commercial finance to help businesses go “green”.

If you are struggling with this area of ​​the future of your business, give us a call to discuss sustainable financing solutions.

Finally, on November 4, the Bank of England voted to maintain the current record rate of 0.1% in light of global economic performance, but indicated that it would raise interest rates in the months to to come.

While these will remain low, with many companies struggling with supply chain and staff shortages as well as skyrocketing energy costs, this move would be aimed at tempering inflation.

So what does this mean for local businesses? At the risk of sounding like a broken record, the need to plan ahead is always key.

By taking a long-term view of your business and assessing its needs over the next two years, you’ll be in the best position to weather tough times.

The financing solutions implemented today can help minimize rising costs, investments in plant or machinery can benefit from unprecedented tax breaks, and committing to a sustainable business plan will ensure that your business helps protect the next generation and beyond.

If you make one thing your top priority this month, be sure to look after the future of your business.

For more information contact Karl Lanham at Complete Commercial Finance on 01553 611619 or visit ccf.finance




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