Rishi Sunak ignores small companies and the self-employed in spending assessment

Wallet: Chancellor Rishi Sunak leaves 11 Downing Street on his way to review spending

Rishi Sunak has largely ignored small businesses hit by the pandemic and struggling self-employed in today’s spending review.

The Chancellor shrugged his shoulders and asked him to cut social security and help self-employed people such as business leaders who were excluded from government support through Covid.

However, he froze any increase in business rates when they came back in April. The Treasury Department estimates this move will save companies £ 575 million over the next five years.

Indeed, there was more help to the worker than to the employer as Mr Sunak raised the national living wage to £ 8.91 an hour for those over 23 and announced a restart program to help the newly unemployed.

Jonathan Geldart, director general of the Institute of Directors, welcomes the restart program, but said the chancellor missed a trick by not combining the program with a cut in employers’ NI contributions.

> See also: Rishi Sunak is asked to help independent business leaders

Nigel Morris, director of labor tax at MHA MacIntyre Hudson, said Sunak had failed to deliver for businesses.

Morris said: “More help to businesses is important in protecting our economy, but we haven’t seen any greater support for them, such as cutting employers’ social security payments or restoring the £ 1,000 bonus for keeping the vacation time continue to vacation employees. “

“The increase in the national living wage is great news for workers … but it puts more pressure on overburdened employers to fund wages and the associated costs of national insurance.”

Qdos, the self-employed insurance broker, said the spending review ignored a “golden opportunity” to fill the gaps in financial support for coronavirus for those previously excluded.

Seb Maley, CEO of Qdo’s CEO, said: “The Chancellor did not even acknowledge the gaps in coronavirus support in his speech, despite increasing pressure to tailor the help available.”

“I find it remarkable that the government continues to ignore calls to provide millions of freelancers and small business owners with the support they clearly need.”

further reading

How Brexit will affect your company – Import No. 1

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