Budget 2022 underwhelming for Small Business
Responding to Minister Pascal Donohue and Minister Michael McGrath’s Budget speeches, the Director of the Small Firms Association (SFA) Sven Spollen Behrens described the fiscal package as “underwhelming for small businesses”.
What has been described as the first non-emergency budget, it was one which will not do much to lessen the load or to reduce the cost of doing business for, the small business sector. The SFA has consistently called on the Government to recognise the need for a competitive economy, where the SME Test is at the forefront of developing policy. It is clear from this budget that this is not the case. Policy announcements such as the right to request remote work, pension auto enrolment and statutory sick pay are cases in point of this.
“While we are disappointed to see that there has not been a greater effort to reduce the cost of doing business. We welcome the extension of the Commercial Rates weaver for the Experience Economy, the expansion of the EIIS to attract investment and extending the EWSS into 2022. These measures particularly committing to EWSS will help small businesses get back on their feet". Mr Spollen Behrens stated.
In many ways this has been an expensive Budget for small business, which will affect job creation and retention into 2022. We would continue to ask the government to commit to a Small Business Tax Road Map, which would set out the expected taxation measures for the next three year, this will allow small businesses to plan into the future.
Mr Spollen Behrens concluded “while in the round this budget has been underwhelming for small business there have been some chinks of light, such as an increase in the earned income tax credit for the self employed, an expansion of the EIIS, no cliff edge on the EWSS and further supports for the Experience Economy".