Where’s the positive statement on business and entrepreneurs from the Autumn Statement?

Autumn statement

Short-term and populist policy-making is failing those that drive the UK economy, argues Vipul Sheth.

So, another Autumn Statement is announced, and chancellor Hunt has attempted to partly row back on the huge tax take caused by fiscal drag through reductions in National Insurance.

As an ‘entrepreneur’, I found the announcements underwhelming. Capital allowances expensing at 100% in the first year was welcome, but there wasn’t much beyond what was an extension of existing tax rules.

Broadly speaking, and without getting into tax minutiae, I feel that the way entrepreneurs and business owners are taxed is usually driven by political, and therefore short-term, thinking.

We’ve seen in recent years how Entrepreneur’s Relief (now known as Business Asset Disposal Relief) was slashed (by our now-prime minister Rishi Sunak during the 2020 Budget). And the way inward investment, and investors, are treated is inconsistent and not hugely competitive.

There has also been discussion about changing Business Property Relief (which is relief against IHT when passing a businesses’ assets onto a beneficiary). There are numerous successful, family-owned, businesses that would more than likely end up in the clutches of private equity if this relief was reduced.

In an economic slump, we won’t improve it by letting entrepreneurs either leave the country, or by disincentivising their efforts.

As someone who grew up in Coventry and saw the importance of manufacturing to the local ecosystem during the 70s and 80s, I do wonder who will create the businesses to support the myriad of new-build housing developments popping up along out-of-town A-roads around the UK.

Let’s be a nation that encourages investment, entrepreneurialism, and drives the economy forward. Not one that is short-termist, and where politicians prey on envy to misdirect the public.

Vipul Sheth is founder and MD of Advancetrack

Explore our resources

Handshake partnering for outsourced accounting
If you are looking to free up more time and budget for your business, outsourcing accounting services can offer a...
Read more
Rishi Ruparelia
We chat to experienced tech sales chief Rishi Ruparelia about sharing a supportive mindset with accountants, and his first few weeks learning about Advancetrack’s outsourcing and offshoring offerings.
Read more
UK General Election Podium
Can the new government drive change, maintain stability, and do it without blowing the budget? Vipul Sheth sets out a dual path that Keir Starmer should take.
Read more

Helping accountants confidently

Book a Call
Advancetrack® and InsideOutsourcing® are Registered Trademarks of E-Accounting Solutions Limited. Unauthorised use is prohibited.

Copyright 2006 - 2024 © e-Accounting Solutions Limited. All Rights Reserved.
Contact Details
University of Warwick Science Park
The Venture Centre
Sir William Lyons Road
CV4 7EZ 

UK Tel: +44 (0) 24 7601 6308

Level 10, 20 Martin Place Sydney, New South Wales
NSW 2000, Australia

Tel: +61 27 202 1478
Back to top