When it was first announced that David Cameron would form a Lib-Con Coalition government, the small business and company formation sector took a collective concerned breath.
Many business owners felt that a government with such polarised ideological differences would be too preoccupied by internal power struggles to give the company formation and small business sector the strong policy and direction needed to consolidate the country’s financial future.
However, when the Queen opened parliament last month and announced the coalition’s plans to address the budget deficit and prioritise enterprise, many SME owners became more positive about David Cameron’s coalition. Yet as the small business sector eagerly awaits the Emergency Budget, the media has been full of claims that the budget will function around an ill-advised VAT rise and taxation increases, both of which pose a significant threat to business and enterprise in the UK.
According to a recent report from the Federation of Small Business, just fewer than thirty per cent of all their members feel that emergency budget will have a positive impact on the small business and company formation sector.