On the 25th November, the government published both its Autumn Statement and Spending Review. Much of the news concerned with small and micro businesses, with changes to tax, grants, loans, apprenticeships and a huge BIS budget reduction all set to impact on the UK’s entrepreneurial communities. Here, we’ve created a quick round-up of the news you need know.

The BIS budget is down 17%

This piece of news is the big one, with the news that the Business Growth Service has been axed. SFEDI is now working with BIS, the Growth Hubs and LEPs to ensure that our small business community continues to receive high quality business support, including the further development of the SFEDI Directory for Business and Enterprise Support.

Catapult centres are riding high

The government has been generous with the seven Catapult centres which are a network of world-leading centres designed to transform the UK's capability for innovation in seven
specific areas and help drive future economic growth. Spending on the centres is set to increase.

New enterprise zones to be created

Enterprise Zones, first introduced three years ago, are designed to create economic growth in local areas by giving enterprises business rate discounts or enhanced capital allowances. As part of the Autumn Statement, the Chancellor announced that 18 new Enterprise Zones would be introduced and existing ones will be extended. Many of the new and extended Enterprise Zones will be in the north of England, forming part of the Conservatives’ ‘Northern Powerhouse.’ Watch out for new IOEE Enterprise Academies helping businesses in these zones to develop their enterprising skills.

Tax is going digital

A huge £1.3billion will be invested in a new digital system for HMRC. For small and micro businesses and self-employed people, this means that by 2020 tax will be a purely digital undertaking and HMRC will require quarterly updates.

Apprenticeship Levy update

While we already knew that an apprenticeship levy was in the offing, the Autumn Statement and spending review provided a little more detail. The levy will come into force in April 2017 and the rate will be .5% of employers’ paybills. There will be a tax allowance of £15,000 to offset against the levy however, meaning that only around 2% of employers will end up paying.

In light of this announcement SFEDI will be extending the functionality of the Apprenticemakers website, the national support portal for small businesses looking to employ apprentices, to provide further help and resources.