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GOVERNMENT BUSINESS SUPPORT

The Government has made a series of important announcements which will directly affect businesses in Watford, the local region and nationally.  These range from the energy bill relief scheme, to changes in tax.   

 

In the coming weeks, the Government will set out further details of plans to speed up digital infrastructure, reform business regulation, improve farming productivity and back our financial services, which we will feature on this page.

 

Here, we highlight key changes  and signpost you to further information.

Corporation Tax

The planned rise in corporation tax has been cancelled.  Corporation tax will remain at 19%.

 

National Insurance contributions

The planned 1.25% rise in National Insurance contributions has been reversed.

 

Annual Investment Allowance 

The Annual Investment Allowance will remain £1 million permanently, rather than returning to £200,000 in March 2023. This gives 100% tax relief to businesses on their plant and machinery investments up to the higher £1 million limit.

Support for pubs and hospitality

Alcohol duty will be frozen for another year. Reforms to modernise alcohol duties will also be taken forward and the Government will publish a consultation on these plans.

 

Income Tax

The income tax rate will be reduced to 19% and the highest rate of tax - 45% rate  on annual income above £150,000, will be abolished.  

Jobs market

 

Jobseekers over the age of 50 will also be given extra support with jobcentre work coaches, to help them return to the jobs market. This is because rising economic inactivity in the over 50s is contributing to shortages in the jobs market, driving up inflation and limiting growth.

 

Read the full announcement here.

Energy Bill Relief Scheme

 

The new Energy Bill Relief Scheme will cut energy prices for businesses, charities and public-sector organisations such as schools and hospitals.

The scheme will run for six months covering energy used from 1 October 2022 to 31 March 2023.   The level of price reduction for each business will vary depending on their contract type and circumstances.

  • If you’re on a fixed price contract agreed after 1 April 2022 a price cut will automatically be applied to your bill.

  • The savings will first be seen in the October bill, which will typically  be received in November.

  • There'll be a review in three months into how Government will continue assisting vulnerable customers with their energy costs.

  • If you’re on a default or variable tariff your prices will also be automatically cut but you may be able to save more by moving to a new fixed price contract for the duration of the scheme.

  • Beware of scams. You don’t need to apply for the scheme.

Find out more here