Economy

Entrepreneurs Have Their Say On The Spending Review

Today's Spending Review is the last major set of announcements by the chancellor in 2015. With his tax plans junked by the Lords George Osborne is set to announce his Plan B. What do entrepreneurs want him to include - and what to leave out?

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Today's Spending Review is the last major set of announcements by the chancellor in 2015. With his tax plans junked by the Lords George Osborne is set to announce his Plan B. What do entrepreneurs want him to include - and what to leave out?

Economy

Entrepreneurs Have Their Say On The Spending Review

Today's Spending Review is the last major set of announcements by the chancellor in 2015. With his tax plans junked by the Lords George Osborne is set to announce his Plan B. What do entrepreneurs want him to include - and what to leave out?

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Taxation, fuel prices, cyber crime, infrastructure investment; everyone wants something from today's Spending Review. Here's an early Christmas list for the chancellor from some leading UK entrepreneurs and executives.

Goncalo de Vasconcelos, CEO of SyndicateRoom

A key measure that would meet the needs of UK SMEs would be to tackle aggressive tax evasion schemes by large corporations at all costs. This would improve the competitiveness of SMEs, by allowing companies, large and small, to compete on a level playing field.

From an investor’s perspective I would expect the government to improve and streamline the process for EIS/SEIS tax reliefs, ensuring that more investors are able to benefit from these amazing reliefs that are so important for the UK's entrepreneurial community.

I’d welcome more decisions being made locally rather than in Westminster. This would give city councils an opportunity to make their region more attractive for businesses and entrepreneurs alike, creating more jobs locally. Leeds is an excellent example of this.

The city has worked hard to create an entrepreneurial hub and ensure it is a great place to do business. The city could benefit even more if it was able to provide financial incentives in the form of lower business rates, ensuring a decentralisation of businesses and jobs.

Robert Mellor, Business analytics expert at WhereScape

One thing that George Osborne should be looking at is the role technology plays in our society. It wasn't long ago that we were all hung up on the productivity puzzle and commenting on how far the UK was lagging behind. But how much has this changed in the past few months?

The reality is that UK businesses need to embracing technology and this should be a key focus for Osborne's autumn plan. Britons now live in an online, interconnected, always-on digital era. Osborne must actively encourage UK firms to embrace the key digital technologies that can drive productivity - namely automation and big data analytics.

Through this, UK companies can get more value out of their data, resulting in business insight and targeted marketing so businesses can really feel the benefits from the bottom line up and boost profits. With the right technologies in place driving business insight, not only can businesses be productive in time management but they can also drive sales through data insights.

data analysis

Could there be more money for data and productivity improvements?

Vince McLoughlin, partner at Russell New, business, tax, and charity advisers

The chancellor should use this opportunity to have a change of heart on the new dividend tax, which is going to hurt thousands of small and micro businesses across the UK. The costs for small businesses, which include pension auto-enrolment and the new Living Wage for the over-25s, already provide various financial hurdles for them to overcome.

The government has often banged the SME drum claiming that they are part of its five-year plan. However, with millions of small and micro businesses across the UK the impact of the dividend tax will send shockwaves throughout the business community and it is inevitable that doors will close.

There is so much potential for our small businesses to grow and lead us to a greater and healthier economic position yet the government is doing all it can to hinder this potential. This is also the perfect opportunity to announce plans to align income tax with national insurance.

It is the right time for a review of employer’s national insurance; this is simply another levy of tax and that’s exactly where it should kept – with tax. The key desired outcome from the Autumn Statement is that the current economic confidence continues to be built upon so businesses can carry on building their workforce and investing in growth.

Alistair Bingle, Managing Director at Bishop’s Move, family owned removals company

UK diesel prices are now the highest of the 56 countries in Continental Europe and we currently have the highest Fuel Duty levels in the Western World. More than two-thirds of the pump price in the UK is down to tax, making it the highest in the EU for diesel and the second highest for petrol.

Therefore, a 3pc cut in fuel duty would be a welcome relief for our industry, businesses that rely on the roads, and of course families across the country. In addition, a fuel duty price cut would stimulate consumer spending and business investment and re-ignited economic growth across the UK. Fuel duty cuts have a history of creating more jobs.

However, by increasing tax on fuel duty then this will add millions in extra costs to families and businesses across the country having a detrimental impact on the haulage industry and damage job creation levels over the course of the next year.

For example, for the amount of fuel that’s consumed throughout the removals industry on a daily basis, even a small hike in price means our costs increase significantly. We can’t always pass on these costs to customers, so we take the hit.”

lorry fleet

Running a fleet of vehicles is pretty expensive Mr Osborne

Natalie Duffied, CEO of intechnologyWiFi

Britain continues to face connectivity difficulties, whether due to infrastructure or digital skills, and 15% of British households are still without internet access today (Ofcom, 2015).

The government must continue its investment in ensuring that every British residence has access to the internet – investing in broadband infrastructure to ensure every household is connected and through funding open-WiFi schemes to connect those using community hubs or living in sheltered accommodation, as Watford recently deployed to help battle digital exclusion in its town.

Internet connectivity is an essential tool for education job searches, and getting the most cost-effective price for the utilities bills. The government should look to reaffirm its commitment to connectivity and ensuring that no citizen is left disconnected from its abundant opportunities.

Paul Farrington, ‎Senior Solutions Architect at Veracode

It’s promising that the government has affirmed its commitment to tackling cybercrime in the UK, with a £1.9bn investment announced by the chancellor last week. But, as GCHQ director Robert Hannigan argued earlier this month, the free market is failing cybersecurity.

The government must go beyond its fiscal investment and also invest in policy and regulation to ensure that companies are held liable for breaches where they have not taken appropriate measures to secure customer data. This will be important for ensuring that companies carry out their cybersecurity due diligence and protect against known threats.

But, with any steps towards issuing liability, the government must also ensure that it is providing cyber education to the private sector so that all companies can make informed decisions on cybersecurity.

Technical training must not only be provided to the engineers who are leading the cyber fightback, but also to Non–Executive Directors who will then be better informed to ask the board the uncomfortable questions necessary to determine whether the firm can repel and indeed survive a breach attempt.

Without more executives gaining a greater understanding of how to question the CEO and CIO on these topics, change will continue to be glacial in pace, despite a rapidly growing attack landscape.

hacker

Hackers and viruses could pose a threat to a connected future

Sharon Argov, CEO and Co-Founder of Fundbird

It isn’t surprising to hear that the Funding for Lending Scheme is set to be phased out in January 2016. When it was introduced, it was a timely initiative from the government to encourage the banks to lend more to individuals and small businesses. However post-recession it doesn’t make financial sense for the government to continue with it.

The government referral scheme is a welcome, contemporary alternative given the vast array of funding options now available to small businesses from alternative lenders. We hope to hear that the government will build on this and support the alternative finance space further, throughout 2016.

By developing policies that encourage British businesses to utilise alternative finance lenders, we will see productivity and growth increase exponentially among Britain’s small businesses, which is a no-brainer for the government.

JF Sullivan, Chief Marketing Officer, Xura

The government referral scheme is a welcome, contemporary alternative given the vast array of funding options now available to small businesses from alternative lenders. We hope to hear that the government will build on this and support the alternative finance space further, throughout 2016.

By developing policies that encourage British businesses to utilise alternative finance lenders, we will see productivity and growth increase exponentially among Britain’s small businesses, which is a no-brainer for the government.

In today’s climate, control of public spending is crucial for a nation’s economic security. Britain is facing a situation in which its budget needs to be to revisited to enable long-term investments in areas essential for its well-being.

Increased funding of infrastructure and high-quality broadband will give businesses greater access to rich, modern communication technology, such as WebRTC (web real-time communication), which can be used to enrich and enhance the provision of customer service in both the private and public sector.

For example, high street banks can remotely connect with customers, delivering instant, secure, personal and cost-effective service via their mobile devices, and offer a range of communication options such as SMS, video chat, or instant messaging.

And virtual “eyes in the field” will allow cardiac nurses to monitor the vital signs of dozens of patients at a time, in real-time, communicating with  them when necessary, and saving on resources and the need for costly interventions.

Not mentioning easy quick video calls and secure document sharing between doctors to share diagnostics, doctor to patient and so on, saving a lot in unnecessary care coordination and transportation.

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Entrepreneurs Have Their Say On The Spending Review

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