THE NICKLIN MANIFESTO

With only two weeks to go until polling day, time is running out for politicians to impress SME owners looking for business friendly measures to sustain the economic recovery. David Nicklin sets out his policy wish-list to support the engine room of UK plc. Over the past few weeks it seems as if all the main parties have been falling over themselves to stand out as the business-friendly voter’s choice. There have certainly been some eye-catching propositions made around spending, taxation and apprenticeships. Of course, any seasoned business owner will know that manifesto policies are one thing and introducing them in practice is quite another so many pronouncements will have been taken with a generous pinch of salt. Broadly, we believe business owners will be looking for three key things from any new administration. Policies that stimulate and support the wider economy. Policies that support their individual businesses and crucially a moratorium on any potential measures that would make doing good business harder. Encouragingly, there does already appear to be some broad consensus on a number of issues, with all the three main parties favouring a review of business rates, measures to stimulate apprenticeships and free up access to lending. However it’s invariably tax that gets finance directors hottest under the collar and that’s where the different propositions start to appear. Naturally, any business owner would question an increase in corporation tax, particularly just as the economy is showing real signs of flourishing again. What’s more, it would be good to see extensions to schemes that incentivise start ups such as entrepreneurs relief, which provides for relief from capital gains tax and enterprise investment schemes, which offer investors generous income tax relief. The nation’s public finances of course also need careful stewardship so business leaders will be looking for continued careful managing down of the national debt though not alongside massive public sector cuts given just how much the two sectors continue to serve each other through supply arrangements and partnership working. Above all, business prizes certainty so the prospect of a hung parliament and a prolonged period of wrangling to establish a working majority certainly isn’t one many firms large or small will relish. Furthermore, question marks over our future role in the European Union are further destabilising. The UK undertakes such a high volume of business with the EU that it’s an issue that needs to be resolved once and for all, preferably as soon as possible to allow companies to get to grips with any new playing field. Once the new government is finally established, all eyes will be on the administration’s first Budget, something that is likely to be called relatively swiftly after the election, whoever’s in charge. George Osborne’s March offering proved somewhat of a damp squib for SME manufacturers so there will be high hopes in any emergency Budget for fresh fiscal incentives targeted specifically at the sector to maintain confidence and encourage growth. After such a damaging downturn, UK plc has dusted itself off and got on with the job of delivering growth and employment. As such, businesses up and down the country will be hoping for an administration that recognises this and is on hand to champion the five million plus SME’s that continue to power the British economy. Roll on 8 May...