What can businesses expect from Rishi Sunak?

History has been made in the UK, after Rishi Sunak, who has become the youngest prime minster for more than 200 years, has been elected to fix the many mistakes made my Truss.

Rishi Sunak, who is the UK’s third Prime Minister in seven weeks has been elected as the new Tory leader after winning one of the shortest Tory leadership contests. But what does this new appointment mean for businesses in the UK?

We’ve created a helpful guide outlining everything that you need to know about the new Prime Minister’s plans to regain economic control and growth in Britain, including changes to business tax.

 

Brexit

It has been announced that the new PM intends to cut the “red tape in the financial sector” in a bid to trigger growth opportunities that were seen during the 1980S.

For example, as part of these plans small businesses will now require upfront deposits or capital in order to tender for contracts or to build technology for better performance. At the same time, short-term business loans will now be able to be accessed quickly and with minimal hassle.

 

An increase in corporation tax

In Sunak’s March mini-budget, the new Prime Minister stated that said he would increase corporation tax from 19% to 25% in April 2023. This plan was then reiterated in July that this would stand if he was elected and this will now come into force in April.

 

Business rates

The new Prime Minister has also pledged to extend the current 50% business rates reduction in his first Budget.  With this in mind, businesses already impacted by business rates tax are being encouraged to free up some of the capital in their premises.

At the same time, unsold stock, land, buildings plant machinery and equipment can all be used in asset finance.

Inflation

The rapid rise in inflation is already having a significant impact on businesses of all shapes and sizes, and with the base rate expected to rise by 0.75 percentage points early next month, Sunak has made this a priority to address in order to encourage growth in the economy.

 

This is because inflation is already stemming the growth of UK businesses, and in turn, is limiting expansion opportunities. Sunak is committed to regaining tight hold of the economy in order to encourage all businesses to grow.

 

Fuel duty

The Prime Minister had already announced a temporary cut to fuel duty on petrol and diesel by 5p per litre for 12 months, on the 23 March 2022. However, as fuel prices have continued to rise at record rates, Sunak is now under increased pressure to cut duty further in a bid to help businesses with their operational costs.

 

Why choose React Accountancy?

Here at React Accountancy, we provide trusted accountancy services to start-up, established and multi-national businesses across a diverse range of industries.

 

From the moment you get in touch, our approachable, friendly and professional team will go above and beyond to ensure that you receive the right advice, support and accountancy solutions for your business.

 

All of our team has years of experience in providing accountancy services that support your business including complex financial issues.

 

 

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