On July 4, the Government will be holding a general election for people in every part of the UK to help decide the members of parliament for their constituency. The leader of the party with the most seats will then choose the other members of Government. This week, parties released their manifestos, to share their plans for the country, but what did they say about small businesses, and how would each group’s plan impact barbers, and the barbering industry as a whole?
The Conservative Party
The Conservative manifesto made many pledges in consideration of small businesses in the UK, saying that: “Small and medium-sized businesses are the lifeblood of our economy and we are making the UK the best place in the world to start or grow a business.”
Key Pledges:
- Keep the VAT threshold under review and explore options to smooth the cliff edge at £90,000.
- Improve access to finance for small and medium busineses, including through expanding Open Finance and by exploring the creation of Regional Mutual Banks.
- Lift the employee threshold allowing more companies to be considered medium-sized.
- Retain tax incentives that encourage small businesses to grow, including the Enterprise Investment Scheme, Seed Enterprise Investment Scheme, Venture Capital Trusts, Business Asset Disposal Relief, Agricultural Property Relief and Business Relief. Neither will the Conservative Party increase Capital Gains Tax.
- Ensure that Basel III capital requirements do not inhibit lending to small and medium businesses.
- Fund 100,000 high-quality apprenticeships for young people.
The Labour Party
Labour’s plans for economic growth include specific support for small businesses, commenting that “small firms, entrepreneurs, and the self-employed face unique challenges.” And calling them: “The lifeblood of communities and high streets across the country.”
Key pledges
- Cap corporation tax at the current level of 25 per cent for the entire parliament.
- Retain a permanent full expensing system for capital investment and the annual investment allowance for small businesses.
- Reform of the British Business Bank, including a stronger mandate to support growth in the regions and nations, to make it easier for small and medium sized enterprises to access capital.
- Publish a roadmap for business taxation for the next parliament which will allow businesses to plan investments with confidence.
- Create a new publicly-owned company, Great British Energy, and ensure tougher regulation on existing energy companies.
- Create a Growth and Skills Levy, to replace the current Apprenticeships Levy.
The Liberal Democratic Party
The Liberal Democrats’ manifesto commented that the growth of businesses has been minimal, productivity is slipping, and business confidence have been damaged in recent years. The Party said that it will “maximise the opportunities for investment, growth and employment across the country.”
Key pledges
- Boost small businesses and empower them to create new local jobs, including by abolishing business rates and replacing them with a Commercial Landowner Levy to help our high streets.
- Tackle the productivity crisis by encouraging businesses to invest in training, take up digital technologies and become more energy efficient, including through a industrial strategy and reform of business rates.
- Replace the broken apprenticeship levy with a broader and more flexible skills and training levy.
- Helping people with their energy bills by implementing a one-off windfall tax on the super-profits of oil and gas producers and traders.
Chief Executive of the National Hair and Beauty Federation (NHBF), Caroline Larissey, responded to the Conservative and Labour manifestos.
Regarding the Conservative pledges, she said: “We are pleased to see that the Conservatives have listened on VAT. The hair and beauty sector as a services industry is crying out for VAT reform and exploring options to smooth the cliff edge around the VAT threshold is in line with a VAT report we published at the start of the year.
“On apprenticeships, to achieve 100,000 apprenticeships in England every year by the end of the next Parliament, the next Government will need to consider incentives for small and micro employers to make the affordability of apprenticeships viable. Our sector has long been a significant employer of young people.”
Caroline also responded to Labour’s manifesto, commenting: “Labour’s plan to support small business and high streets is positive including through business rates reform and tightened regulation on energy companies.
“However, Labour refers to a roadmap for business taxation without saying what would be in it. Businesses will want more information on that including what the proposed Growth and Skills levy will mean for small and micro businesses, apprentices and how it will help them bring on the talent of the future.”
