IQ-Magazine-Issue-14

IQ business overview
the Palace of Westminster in a couple of London
taxis.
Perhaps more alarming for places like East Anglia
is the power now being wielded by the Scottish
National Party. Where the majority government
is batting on a narrow wicket, it could well be
votes from north of the border which will settle
things one way or another. And that may not be
for the overall good of places like Suffolk and
Cambridgeshire.
We are, of course, still in the government’s
honeymoon period and it could be said that
things are still bedding in. Yet some momentous
decisions have already been taken.
John Allan, the National Chairman of the
Federation of Small Businesses, welcomed
moves to reduce corporation tax, fix the annual
investment allowance and boost regional growth,
where investment in roads was particularly well
received. This is, of course, something which will
be warmly welcomed by many in East Anglia.
But the welcome was not so hearty for the proposals
to institute a levy on large companies in order to
fund apprenticeships. A potential relaxation of
planning restrictions produced a mixed reaction.
While jobs could easily be created, many could
be threatened if adequate safeguards are not put
in place. “The introduction of a new National
Living Wage for over 25 year olds, set at £7.20
an hour from next April, will pose significant
challenges for many small firms, particularly those
in the hospitality, retail and social care sectors,”
added Allan. Clearly, that will have a significant
impact on East Anglia, where a good many small
companies could be adversely affected. While
the increase in employment allowance to £3,000
is broadly welcomed by small companies, this is
unlikely to offset the increase to the
wages bill represented by the new
minimum wage.
Setting the annual investment
allowance at £200,000 will
encourage many small
Small
businesses
are heavily
reliant on the
road network
for success
businesses to invest
and therefore to create
jobs.
Particularly welcome for
East Anglia will be the new
road fund. “Small businesses are
heavily reliant on the road network
for the success of their businesses,”
added Allan, something which has been made
crystal clear by businesses in Suffolk, Norfolk
and Cambridgeshire for years. Promised road
improvements should, therefore, become a reality.
Plans to devolve powers to Northern cities
continues to be a government theme and people
in other English regions will be watching carefully
to see how the devolution of services such as the
NHS, police and transport will work.
But there are still big issues to be resolved, issues
which will impact every part of the UK. The
recent report suggesting the building of a third
runway at Heathrow Airport needs to be resolved
quickly. It cannot be the basis for another decade
or so of debate.
For those who thought that political and economic
debate was over (in the first week of May) for
another five years, there’s disappointment ahead.
Interest rates are set to rise sooner rather than
later, there’s the European referendum and who
knows which way the economy will turn. We live,
as they say, in interesting times.
More Information
www.iqmag.co.uk
issue 14 | page 9