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Digivo Ltd

Budget 2014 - What About New Businesses?

20 March 2014 10:54


Chancellor George Osborne unveiled the latest budget yesterday, overall the message was positive. A raise in the personal allowance, a huge jump in ISA allowances and many other positive factors mean that for workers the future looks bright. However for new businesses, there was little to get excited about.

The initial consideration is that there is already a lot of positive news for the small business from before the budget. The continuing reduction in corporation tax is good news for small business owners, the £2000 allowance on employers NIC is fantastic news for small businesses looking to take on staff. That said, at a time when new businesses are key for battling unemployment and driving economic growth, there was no mention in the budget of anything to drive the banks to finally start supporting start up businesses again. The only nod of the head toward providing investment for entrepreneurs and new businesses was the confirmation that the pre existing Seed Enterprise Investment Scheme (SEIS), which offers investors a 50% tax relief on investments in qualifying new businesses, would now be permanent. This scheme has helped many new companies, including a new web design company Digivo, founded by two young entrepreneurs. Managing Director Matthew Foster, 29, said "The government needs to do more to push banks into supporting new businesses. Small businesses account for around 60% of employment in the UK, supporting new businesses should be a priority as part of any plan to support the recovering economy and reduce unemployment. SEIS is great if you have a backer or an angel investor, but this is not always the case. Giving entrepreneurs better access to the funds to start and grow businesses will benefit the economy as a whole. "

The fact that new businesses continue to struggle to get investment from the banks which should be there to support them is a continuing problem, which frustrates entrepreneurs and stops many would be new businesses from ever coming to fruition. The budget contained a number of tax breaks for businesses including an increase to the Annual Investment Allowance, however fundamentally if a business cannot get started due to a lack of investment, all the tax breaks in the world won't make any difference.

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About Digivo Ltd

Digivo are an award-winning web design and development agency based in Hertfordshire. With over 10 years of design and development experience, we pride ourselves on creating rich, engaging websites and online media.

We work closely with clients to deliver their requirements in a precise fashion as well as using our knowledge and experience to assist clients in extracting the most potential from their online presence.

And we don't just stop there. Going forward we like to keep working with clients in managing their digital media and online presence and have been likened to an extension of their business.

We always go the extra mile for our clients, using our experience in many areas to help them reach their goals. From graphic design, digital print to exhibition planning and marketing campaign management, we never just stop at websites.

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