Firms say there was little to cheer about in the Autumn Statement with the measures delivering more 'squeeze and freeze' than had been hoped.
But there was some positive news - support for business rates and continued tax breaks to incentivise investments have been welcomed.
But there is still a rocky road ahead with many firms waiting for more details, particularly on any energy bill support schemes that may come.
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And while the national living wage increase will be welcomed by low earners - it will add more pressure on firms already planning for high energy bills and supply costs.
We have gathered insights and reaction to find out what the Autumn Statement means for you.
READ NEXT: At a glance: Key points from Chancellor Jeremy Hunt’s autumn statement
Small Businesses
Small businesses battling soaring energy and utility bills, staffing costs and fuel costs will not have much to celebrate in the Autumn Statement.
But there is some reassurance with the freeze on NI contributions for employers and VAT rates.
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Kate Allen, owner at Devon-based luxury holiday lettings specialist, Salcombe Finest said that Jeremy Hunt had failed to deliver on growth and to incentivise small businesses.
"What is the point of working hard if we are being penalised with a freeze on income and tax thresholds, and the reduction of tax-free dividends?"
The national living wage increase next April will be welcome to low earners, but will put pressure on small firms.
Adrian Young, a tax partner at accounting and business advisory firm HURST, said: "The increase in the national living wage will be welcomed by many, although let’s not forget that it comes at a cost to employers who actually fund the increase. Whether it hampers the ability of companies to create jobs remains to be seen."
For hospitality, pubs and cafes
The Chancellor confirmed that the re-evaluation of business rates would go ahead from April but announced a transitional relief scheme to protect firms from a 'cliff-edge' for 700,000 firms including pubs and retailers.
And while ongoing support for energy bills was announced for domestic customers, no further details were given for vulnerable businesses, though it has been announced previously that a review would decide how that support continues after April.
Sam Martin, Chief Executive of Peckwater Brands, which rolls out delivery services for existing restaurants, said he was disappointed that no specific help for the sector was mentioned.
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He said: "Businesses that have survived the pandemic, lockdowns, staff shortages and supply issues will now have to face the fresh challenges of austerity and downturn. The measures announced today like tax relief and the energy price guarantee will go some way to safeguarding our independent pubs, cafes, restaurants, and bars – though only time will tell if they will be enough.
"We all hope that these measures will be enough to ensure stability and growth in the long term, but even with the intervention that has been announced, I predict a difficult year for hospitality businesses. Consumer spending will be reduced significantly, and supply and staff shortages remain a major challenge for many."
Tarun Gidoomal, 海角视频 General Manager at Ankorstore - Europe’s fastest growing curated marketplace, added: “Hunt saying he will ‘soften the blow’ on businesses is not enough, and independent retailers up and down the country need more in order to survive the ongoing ‘permacrisis’ of 2022.
“If the government fails to extend the Energy Relief Scheme, as was missed out of today’s budget entirely, the majority of independent retailers (89%) believe they will suffer as a result, with almost half of all independent retailers (42%) saying that this would cause them to close or consider closing.
“The closure of so many great independent retailers would have huge and far reaching consequences for the communities who depend on these shops – and the social infrastructure they provide, as well as Britain’s economic recovery out of what is being predicted to be our longest ever recession."
Sacha Lord, Greater Manchester's night time economy adviser, said: "Landlords and restaurant owners will be deeply concerned by today’s Autumn Statement.
"With these announcements, we will inevitably see a notable downturn in consumer spending over the coming weeks and months, at a time when operators need the most support as they recover from the hangover of pandemic-related debt.
"Disposable income underpins our 海角视频 economy and I’m hugely concerned that the policies outlined today will create a severe contraction in the sector.
"Spending on luxuries such as dining out is naturally the first to go in times of cutbacks and the hospitality sector is wide open to be the first to suffer.
"Operators are being squeezed beyond their ability, and I fear we will now see huge cuts in staffing, reductions in opening hours and venues closing at a faster rate faster than seen during the pandemic.
"It is a very sad state of affairs and there will be many extremely worried business owners in the 海角视频 tonight."
For self-employed people
Joanne Thorne, Technical Compliance Manager at SJD Accountancy said it will be the self-employed who feel the pinch of tax hikes most acutely.
The Chancellor announced a Capital Gains Tax threshold reduction from £12,300 to around £6,000 in 2023 and to £3,000 by 2024
The tax is paid on any profit gained when selling an investment asset, such as a property or shares.
Ms Thorne said: "This move is another blow to Limited Company Directors who may have built this tax efficiency into their company exit strategies. Many may now be forced to reconsider any exit strategy they had previously put in place."
The Chancellor is also cutting the £2,000 tax-free dividend allowance to £1,000 by next year and halving it again to £500 by April 2024, alongside existing increases to both the dividend tax rates (by 1.25 per cent), and Corporation Tax from next year.
She said the statement is 'a triple whammy' for Limited Company contractors.
“It’s disappointing that the contracting community continues to battle for financial security after a difficult few years, and government policies seem to overlook the valuable role they play in the 海角视频 economy. The Chancellor described this as a 'balanced plan for stability' but what we have seen today with these policy changes is a combination of squeezing and freezing. There is no doubt that tax planning in the years ahead for every self-employed individual will be absolutely essential.”
Nick Latimer, Private Clients Partner in the Cheltenham office of national audit, tax, advisory and risk firm Crowe said the reduced dividend exemption will add further pain for SME business owners who are used to extracting profits by way of dividend, and who are still hurting from the cancellation of the planned reduction of 1.25% which has been applied to national insurance.
He said: "In good times, increases in dividend tax might encourage further re-investment of business profits, particularly at a time when corporation tax rates are increasing to 25% - but in a period of recession it is also tempting to delay investment. This will also hurt those who are already struggling in the post COVID environment, particularly those in the hospitality and leisure sector."
For employees
The Chancellor announced a hike in the National Living Wage from next April to £10.43 but that's still below inflation, says Gary Smith, GMB General Secretary.
Ben Harrison, Director of the Work Foundation at Lancaster University, a leading think tank for improving working lives in the 海角视频, welcomed uprating benefits in line, but increases won't arrive until April.
And he called for urgent action on the 'specific challenges blighting the 海角视频 labour market'.
He said: "Reviews on economic inactivity and adult skills were announced, with no specific policy proposals or resources allocated. These reviews must be conducted rapidly, harnessing the wealth of available evidence to provide and in the case of skills, the conclusions of the countless other such reviews already undertaken. Otherwise the Government will fail to deliver on its growth ambitions."
Growth and investment
The cut to dividend allowance from £2,000 to £1,000 will crush 'entrepreneurial spirit', said Jamie Morrison, head of tax at accountancy firm HW Fisher.
“He said: "This may be targeted at wealthy investors, but the reality is it will have big consequences for entrepreneurs and small businesses. The 海角视频 economy is struggling and we should be driving creativity and innovation, instead the Chancellor is crushing entrepreneurial spirit.”
Darren Westlake, CEO and Co-founder, Crowdcube, welcomed the extension of the (EIS) and (SEIS) beyond 2025.
The schemes use tax breaks to incentivise investment into entrepreneurial companies.
He said: "Both schemes have been instrumental in making our country one in which risk is rewarded, and entrepreneurialism and business building thrives. The schemes’ retention is crucial for both businesses and investors being hit with higher taxes elsewhere."
He said that founders of growth stage firms who want to see improved skills and infrastructure would also welcome the ringfenced capital expenditure and increasing education spending in the Statement.
"However, these measures were a few rays of light in what was otherwise a very grey outlook. I just hope they are enough to sustain my sector sufficiently that we are able to expedite the country’s economic recovery", he said.
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