Which businesses can make the most of the Budget 2015?

The first Conservative Budget in 19 years was, unsurprisingly, Mr Osborne’s opportunity to exert the influence of the new Government in areas such as welfare, infrastructure and, maybe most significantly, business.

In a Budget full of announcements which will have massive implications for businesses across the UK, Tracker examines the measures announced and explains which businesses will be best placed to benefit from the Budget 2015.

The 5 key announcements

  • The Minimum Wage

Perhaps the biggest shock from the Budget 2015 was the Chancellor’s decision to increase the minimum wage, stating that “Britain needs a pay rise”.

The new wage will start at £7.20 an hour from April 2016, rising to £9 an hour by 2020 for people aged 25 and older.

Who will benefit?

Low-paid workers over the age of 25 will certainly be the first to benefit from this big announcement. However, some businesses, and smaller businesses in particular, could feel the pinch as employee costs begin to rise.

  • Corporation Tax and National Insurance

Britain already has the lowest rate of Corporation Tax in Europe, and the Chancellor has announced plans to cut this business tax even further, to 18% by 2020.

In addition, from April 2016, the government will increase the National Insurance contributions (NICs) Employment Allowance from £2000 to £3000 a year to help businesses with additional wage costs.

Who will benefit?

Lowering the rate of Corporation Tax will benefit larger businesses most of all, in particular foreign business looking to establish trading in the UK. The ove certainly sends the message that Britain is “open for business”.

However, small firms will largely not feel any benefit from a lower Corporation Tax rate. To combat this and the rise in minimum wage for SMEs, Mr Obsorne stated that the increase in Employment Allowance will mean businesses are able to employ four workers full-time on the new National Living Wage, without paying any National Insurance Contributions.

  • Annual Investment Allowance

Annual Investment Allowance, which allows companies to write off capital spending on plant, equipment and machinery against profits, will now be set at £200,000 this year and every year.

The move will come into effect from January 2016.

Who will benefit?

This announcement is certainly a real boost for small businesses, particularly those in the IT and manufacturing sectors.

Mr Osborne said that this was a major, permanent boost to the incentives for long-term investment by small and medium sized firms in Britain.

  • Apprenticeships

As part of the Chancellor’s existing pledge to recruit 3m more apprentices across the UK in this Parliament, he also addressed the issue of funding these training places.

Big businesses in future will have to pay a levy on the apprentices they employ in order to ensure that the skills gap is met and the apprenticeships are of high quality. Businesses which are committed to employing apprentices will then be able to ‘take back more than they put in’ from the fund.

Who will benefit?

The Government believes that the levy will ensure that the target of 3m more apprentices will be met and that businesses which are committed to supporting training will benefit from the measures.

However, businesses have expressed concern that the move will impose additional burdens and bureaucracy on firms as a result.

  • Infrastructure

Another big winner from the Budget was infrastructure, with particular emphasis placed on improving Britain’s roads.

George Osborne announce no rise in fuel duty, major reform to vehicle excise duties to pay for a new road-building and maintenance fund in England, and new bands for new cars to be introduced from 2017.

In addition, £30m has been announced for new body to promote integrated transport in the north of England.

Who will benefit?

For UK businesses involved in any aspect of infrastructure, construction, planning or equipment supplies, the measure to improve Britain’s roads

A Budget for opportunity

With big announcements which will transform the banking sector, infrastructure, business and tax and much more, the bottom line is more opportunities for businesses like yours.

With new opportunities around the corner, you should make sure you’re in the best possible position to make the most of them.

The Supply National Engagement Programme offers the largest database of contract opportunities in the UK guaranteed. In the last quarter alone, Supply published 17,714 opportunities across the whole UK, giving your business the best possible start in growing in the next Parliament and beyond.

If you’d like more guidance on how your business can benefit from booming cyber opportunities, then a free trial of Tracker could help.

Tracker offers you:

  • Tender alertsin your sector direct to your inbox
  • The opportunity to find out what your competitors are doing and how to beat them withSpend Analysis Pro
  • The latest updates and legislative news in your sector with Market Intelligence

To test the system for yourself, book a free Tracker trial today or contact your dedicated Account Manager to find out more.

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