Money matters

Fast-forward a month to the Spring Budget, and the fact that the Chancellor appears to have listened to the concerns raised on business rates, and offered a plan in his statement yesterday, was key.

For the Federation of Small Businesses (FSB), the £435m of relief fund money represents a “direct and much-needed response to those facing hikes in their business rates. This immediate relief is vital in the short-term, and action on more frequent revaluations will also help."

However, the FSB could not resist offering the caveat that the rates tax itself remains out-of-date and is not fit for purpose.

When OT asked Mr Watson for his wider view on the reality of rises, he noted that, for a small number of independents in London and the South East facing the largest rate rises, the increase genuinely could bring business viability into question – "but the blame is likely to be with a fundamentally flawed operating model, with the practice sailing far too close to the wind prior to rate rises."

While news of an additional £2bn for social care has caught the attention of many, the sting in Mr Hammond's budget appears to be less welcome news for the self-employed.

For Class 4 National Insurance contributors, National Insurance is set to rise to 10% next year and 11% in 2019.

As with the business rates storm, the Chancellor can expect a fight back, as the move is characterised by the FSB among others as "a tax grab on middle income self-employed people, who are just about managing."

Are you a self-employed business owner with a different view on the Budget? Share your thoughts in the AOP’s community forums.