Majority Government – what’s the impact for SMEs?
However, what’s the impact for your SME?
The campaign trail included much to grab the attention, and win the votes, of SMEs – including a £500m tax cut pledge for small businesses, reducing the tax burden for business owners, a review of business rates and massive investment in cloud based and data technology so that businesses could “focus on what they do best – spurring innovation, creating jobs, stimulating growth”.
Ending what Mr Johnson has described as a ‘box set of Brexit madness’ he confirmed that the UK will leave the EU on 31stJanuary; and so the nation holds its breath as Boris “gets Brexit done”, thus (we hope) ending economic uncertainty.
The Pound certainly has reaped the benefit of last night’s election. As the Exit Poll was announced it hit its highest level against the dollar since March – it’s fourth consecutive rise in as many weeks.
It’s believed that the UK will be set for an increase in consumer confidence, a rise in overseas investment opportunities and an all round economic boost – with economic and financial figureheads already predicating the UK’s lead in growth over all other G7 counties in 2021.
What’s massively important now is that SMEs seize this optimistic outlook wholeheartedly, ensuring they are validated within the TPS scheme to import and export through the EU so that from 1stFebruary trading is not affected. What’s more, SMEs need to make themselves aware of international business opportunities given Australia and the US are looking to strike a trade deal with the UK once we leave the EU.
Cashflow needs to be fluid so expansion and growth opportunities can be seized. Whilst banks will gradually increase their lending, after holding back for 12 months, SMEs in the meantime should look at immediate funding through alternative lenders via independent brokers such as Cashflow Bridge..after all, cashflow is King!