Budget 2013: A business blockbuster or flop?

As I write this, commentators are raving about a ‘Budget for Business’. But, as an entrepreneur and small business champion that lives and breathes business life, I have to admit to mixed feelings.
 
George Osborne wanted to level with the British people and dire economic growth forecasts are a great leveller. There is no way to get around the fact that the chill wind of economic turbulence continues to blow across from the Continent, and could well continue to freeze business confidence for some time to come.
 
So, to be fair to the Chancellor, he didn't have much to play with - caught in an economic strait jacket that is enough to make sane men cry (whether or not you believe it was this Government or the last one that was culpable).
 
Given this predicament, a £2,000 National Insurance allowance for small businesses is great news. It could make all the difference for that extra hire or two for micro-enterprises. However, it is a drop in the ocean when it comes to combating chronic youth unemployment and further initiatives around this could have really made an impact. But credit where credit is due to the Chancellor.

Full coverage of chancellor George Osborne's 21013 Budget speech on Yahoo! Finance

Now, talking of credit, lending to small firms has been a bug bear for many a year now. The much trumpeted Funding For Lending scheme has hit a flat note so far, and the idea of a Business Bank has been a bit of a pipe dream. However, the Chancellor mentioned both in his speech.

If these ideas can be firmed up, implemented, executed well and have a bit of teeth behind them, then they can help much wailing and gnashing from entrepreneurs. Capital remains the biggest barrier to that all-important and elusive growth.
 
The future cut in corporation tax to 20p for larger companies is also enough to warm the hearts of businessmen and women up and down the country. But all it does is bring the larger company rate in line with the 20% smaller companies pay. Millions of smaller struggling businesses get no cut, which was an opportunity missed.
 
Scrapping the 3p fuel duty rise in September was clearly the right thing to do - and has been for some time given the anaemic recovery. It is a shame he didn't have room to manoeuvre a cut to push the accelerator on growth.
 
Major incentives to boost the housing and construction industries have got to be good news given the chronic shortage of new houses. An extra £15 billion for new public road, rail and construction projects is also welcome, but given that this is spread over the years to 2020, spending more, sooner, would have made more economic sense.
 
Then there were a raft of enterprising measures. Regional enterprise investment, encouraging apprentices, tax cuts for investment in growth companies on the AIM junior market and for social enterprises (that are working to help the Big Society in a big way) - are sensible and sound.
 
But at first glance I couldn't see any help for Britain's beleaguered High Streets. Business rates continue to rise and shops and jobs continue to be lost. High Streets are going to be low on new tenants and brands unless there is a fundamental shift in attitude and support.
 
So if I was to draw up a small business Budget report card, I would have to say:
 

• B for effort

• C for concrete and timely action

• Fail for economic growth and recovery

In other words, a step in the right direction for businesses. The 'white rabbit' of the £2,000 National Insurance cut that George managed to pull out of the hat was a magic touch. But, overall, nowhere near the triple A rating George, and businesses, crave.
 
George said he wants to help those who want to get on. What he provided are some useful small gains for small businesses - but the reality is,without capital, confidence and a fair economic headwind, many entrepreneurs who want to get on will just have to get on with it themselves. It was always thus.

Andy Yates is an experienced entrepreneur, business mentor, advisor and angel investor and helps a portfolio of exciting growth businesses reach their potential including Huddlebuy, Europe’s largest business money saving website as well as a range of leading social enterprises. Follow Andy on Twitter: @smallbizhelp Follow Huddlebuy on Twitter: @huddlebuy

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