Reignite SME Growth Scheme
The UK in recovery after the Covid-19 pandemic
Battered by Covid-19 the UK government is trying its best to protect its people. Throwing everything except for the kitchen sink at resolving this pandemic and it’s affect on our world and our Islands, much is being reported about where the funds will come from to pay for the various costs incurred to date.
Like all good businesses in the private sector, your future success relies heavily on the support of your customers and this process is much the same for our politicians whom far from being handed cash by the electorate are being handed support via their X on the ballot paper. So keeping customers happy for business is the same as it is for politics.
So where is the money coming from? The £623billion or so that keeps this country or UK PLC on the rails is generated from various taxes collected by the Exchequer. The money is invariably generated by profitable organisations whom, add a small percentage to their cost prices to create a fund that pays for their overhead costs and leaves a small amount called net profit from trading activities to invest in the future of their business.
From these operations a number of taxes are stimulated. First there is the PAYE of £181 billion, Employers and Employees National Insurance of £131 billion collected from the pay awarded by companies to their employees. Next there is the VAT of £132 billion added to the sale of goods. These taxes are all administered locally by every business that provides goods and services and employs people on PAYE. If the Company is an importer, then there are the taxes paid as Duties on imports from around the world which may also soon apply to purchases from the EU. Finally, there are the Taxes paid in the form of Rates to the local authority for simply hosting a business in their locality as the companies contribution, to providing local services. At the very end of all of these transactions are those profits made by the Company to reinvest in the future which are then met with Corporation Tax of £54 billion in 2018/19.
Source for the values quoted can be found here: https://www.statista.com/statistics/284298/total-united-kingdom-hmrc-tax-receipts
- Value Spent by Government £623 billion
- PAYE £181 billion
- National Insurance £131 billion
- VAT £132 billion
- Corporation Tax £ 54 billion
- TOTAL £498 billion, plus import duties generated by the business community
Now we have all heard how unjust the taxation process is, but this is not the time to herald a major change whilst the country is at war with the Coronavirus and Business adjusts to the impact and opportunity of Brexit, but the figures above clearly demonstrate the singular importance of the Business sector to the U.K. economy and the impact on Society our collective Business activities holds.
The fact remains that it is the hard work and diligence of the SME sector that produces the significant part of the UK PLC tax revenue annually. So now we have 1000’s of the same SMEs reeling from the effects of a state-imposed lockdown to protect the health of the people who will thank the Government come the next general election. What happens to the SME sector and how do we protect, preserve and improve this engine of growth?
All SMEs are driven by individuals whom have invariably decided to use their skill-set to provide goods or services in a sector that they have experience with and likely enjoy. My own experience was to demonstrate how I would run a company supplying industrial equipment better than my previous employer to the extent that after the first 20 years we would become a supplier to them. We all have our reasons for starting a small company and some of us are more driven than others, but the plight of SMEs rests solely on the enthusiasm and drive of the entrepreneurs running those companies and being confronted with a pandemic is definitely not in the usual playbook for them.
Contributing 47 per cent of revenue to the UK economy, small and medium-sized enterprises (SMEs) have a key role in boosting productivity – but need support to expand business and increase impact.strong>
The Government has created dining opportunities and may soon create incentives to enjoy the arts, but how do we help every SME that wants to survive and thrive? SMEs are a vital part of the economy, accounting for 60 per cent of all private sector jobs and 47 per cent of revenue in 2016.
We now must look at preserving these vast employment zones and valued tax collectors and tax generators and from our experience of dealing with many recessions and our first pandemic over our 40-year business experiences it has to be focus, focus, focus whilst we build, build, build.
It’s therefore vital to restart the activities of business in such a way that we hit the ground running as the impact from Lockdown and Vaccinations create a safer environment for business transactions to resume. Now might also be the best time for you to consider joining us on our journey to help the many 1000’s businesses across Herts, Beds and Bucks directly and become a biz4Biz Associate and “earn while you learn”.
Further details on how to become a biz4Biz Associate can be found here biz4Biz Associates Programme
My colleagues and I have spent a lifetime developing businesses. The Insight Magazine now has a fast growing circulation level of almost 54,000 email addresses. Our Magazine is growing in popularity as we broaden the awareness of the importance of Business and openly encourage organisations across Herts, Beds and Bucks to read the magazine and learn so much more about the Business sector and the fabulous range of services available locally.
We remain ready to help your organisation leap back into action post the Lockdown’s we have all been sensibly encouraged to endure, with a competitively priced series of adverts and free editorial (members only) along with sponsored webinars and newsletters. We have specifically created our “Let’s work together” package to provide an even greater level of enhanced marketing support and further details for this can be found here https://biz4biz.org/lets-work-together/
There has never been a better time to present the products and services offered by businesses in the Herts, Beds and Bucks area, as we step back into the light of actively trading again post pandemic and the biz4Biz Insight magazine and marketing team are ready to play their part at this new horizon.
About the author
Adrian Hawkins OBE
biz4Biz Chairman, Chairman of the Stevenage Development Board, Managing Director of Welding World, and Herts LEP Skills and Employment Board Chairman.