The UK government’s spending review has set out its priorities for the next three years. But behind the rhetoric about boosting growth lies growing concern about small businesses being locked out of the wider UK economy. Government funding and regulation are increasingly out of step with the reality of micro-enterprises and sole traders, shutting off their potential to boost GDP growth.
These businesses already punch above their weight, accounting for 60% of private-sector employment and more than half of total business turnover. Yet while recent budgets have pushed up costs through higher employer national insurance (NI) contributions and minimum wage rises, little meaningful relief has been offered in return.
