Safe Business Banking
It is a tough time for small businesses. Big business can bail itself out, or be so important that it can go crying to the Government for a bailout and individuals can benefits which although not ideal are better than the alternative. However, small business can't get a bailout and they can't claim unemployment benefit. Yet it is these very businesses that can drive us out of recession through innovation and creativity.
According to the new Office for Budget Responsibility's forecasts, growth in 2011 will be low than previously predicted. According to the watchdog, growth will be down from 3.25% to 2.6%. This of course is bad news for everyone, but especially small businesses.
According to the Forum of Private Business's recent survey, 37% of small business said their costs have increased during the recession; 24% said the tax burden has increased and 28% believe that existing levels of taxation are too high. Orders have been falling too, by 21%, turnover is down in 28% of businesses and profitability is down for 37%.
However, despite all this, 77% of all respondents said the repayment of the national debt should be the Government's first priority. According to the British Chambers of Commerce, paying of the debt should not come from tax hikes that will stifle small business, but should instead come from spending cuts and changes in the way the public sector is run.
However, despite all this talk of being fair to SMEs and encouraging development, banks are reluctant to lend to businesses. According to a survey carried out by Sage UK Omnibus, 34% of SMEs had had bank loans declined and the survey also found that 58% felt there weren't given an attractive rate that would encourage growth.
So what can small business expect from the new coalition Government's budget? VAT is set to rise to 20%, so for those businesses that can't claim this back, they will end up paying £2.50 more on every £100.
However, good news comes as the National Insurance increase of 1% is supposedly going to be abolished. This means it will be cheaper to employ people, which should boost productivity but also help lower unemployment.
Corporation tax is also expected to go down from 21% to 20% which will help businesses that are already established and cut them a 1% break.
If your small business needs a safe place to do banking, then one of the best business bank accounts on the market is from Santander.
Related Searches: Banks
