This month, business rates for small businesses and retail, leisure and hospitality businesses will be frozen or cut and the VAT threshold will be raised to support small businesses.
Since 2010, there has been a big increase in the number of businesses in the Wallasey constituency - according to data from National Statistics, there are now 1,965 'enterprises' here, up from 1,460 when Labour left office.
The vast majority (1,755) are 'micro' businesses, employing up to nine staff. Many have premises on the high streets or industrial units, creating opportunities for new jobs and apprenticeships.
Specific help for businesses across Wallasey and Moreton includes:
- Changes to business rates will take effect including a freeze to the small business rates multiplier at 49.9 pence and 51.2 pence for 2024-25. Freezing the small business rates multiplier for small businesses for a fourth consecutive year, will save an average shop £1,650
- A 12-month extension to the 75 per cent Retail, Hospitality and Leisure relief.
- From 1 April, the registration threshold for VAT will be increased from £85,000 to £90,000 – 28,000 businesses are expected to benefit.
- Building on the success of the 'Help to Grow: Management Course', this month sees the launch of 'Help to Grow: Management Essentials', delivering a 90 per cent subsidy from government so small business owners can get the skills and resources they need.
- From 6 April 2024, an entire class of National Insurance Contributions is being abolished and the rate of the NICs top rate is cut from nine per cent to six per cent – with an average total saving of around £650 for someone earning £28,000 a year.
Welcoming the extra support for small businesses, Tina McKenzie, Policy Chair, Federation of Small Businesses (FSB), said:
This is a big day for small businesses. FSB has campaigned for decisive action to increase the VAT threshold, freeze business rates, and extend the retail, hospitality, and leisure discount and we’re pleased to these come in today.
April 6 will also mean a cut in National Insurance for the self-employed – the Government is right to take forward practical, impactful measures that help small businesses drive growth in all of our local communities.
Commenting, Chancellor of the Exchequer Jeremy Hunt MP said:
“Because we stuck to the plan, the economy has turned a corner – inflation has fallen from 11.1 per cent to 3.4 per cent, wages are rising, mortgage rates are starting to come down and debt is on track to fall as a share of the economy.
“That is why this April we are cutting the double tax on work, putting £900 back in the pockets of the average worker, freezing business rates, boosting pensions, cutting the cost of childcare and delivering a record increase to the National Living Wage.
“By sticking to the plan, the Conservatives will deliver a stronger economy to build a brighter future. Labour cannot say what they would do with the economy because they do not have a plan – they would take us back to square one.”