2010 Budget Statement from Robert Hamill, Financial Controller, Blake Group
The one-off Budget allocation of £2.5bn to boost small business growth in talent and innovation is very welcoming news, but from our research, announcements for Business Rates being cut only refers to SME's in England and our firm will still see a possible 5% increase for 2010/2011.
The continuation of the commitment to the Business Payment Support Service is welcome news for SME's allowing viable businesses to spread their tax payments over an agreed timetable - this has been extended for the whole of the next parliament.
It is also positive news that the Government announces it will stick to public spending plans over the next year but we will have to prepare for the toughest times in decades from 2011 onwards. Positive steps forward to open up the tendering process for public sector contracts continue, but we have concerns that any future cuts could threaten this process.
As the leading manufacturer of steel oil storage tanks to the UK's oil industry, rising fuel duty means we are likely to see an increase in requirements for larger fuel tanks whilst businesses move to stockpiling fuel until prices start to drop. Operationally, the increases in fuel duty, although now staged, will add significantly to logistics costs making the firm potentially less competitive as we look to move into Europe.
Royal Bank of Scotland and Lloyds Bank will be supporting SME's with a total of £94bn of support in the form of new business loans over the next year which is again promising news for our sector.
Thanks to Scottish Enterprise we are already engaging in Research and Development into new construction products helping the firm enter new markets and by doubling the Annual Investment Allowance for SME's to £100,000 supports such initiatives.
Although the announcement of a "Stamp Duty Holiday" for first time buyers and properties under £250,000 is positive, more should be done in funding to invigorate the new-build property market as like so many SME's, we rely on sub-contract construction contracts.
The announcement of a new national investment corporation to be titled "UK Finance For Growth" which oversees £4bn of support will streamline Government help for SME's, but we question whether is direct or indirect support and what does it mean for SME's in Scotland?