We recognise that a number of businesses are facing cost pressures. Energy prices have increased globally over the past year, driven by global factors including the impact of the Russian invasion of Ukraine.
Over the past two years we have taken unprecedented action to protect millions of businesses including:
- extending the Recovery Loan Scheme to 30 June 2022, providing SMEs with up to £2 million of government guaranteed finance.
- cutting business rates by 50% for eligible retail, hospitality and leisure businesses in 2022-23, worth up to £110,00 per business.
- increasing the Employment Allowance from £4,000 to £5,000, cutting the cost of employment for 495,000 small businesses.
- increasing the Annual Investment Allowance to £1 million.
- introducing the super-deduction, allowing companies to cut their tax bill by up to 25p for every £1 they invest in qualifying productivity enhancing plant and machinery assets until March 2023.
- businesses will also benefit from the cut to fuel duty announced by the Chancellor announced as part of his Spring Statement. The duty rate on petrol and diesel has been cut by 5p per litre for a year, from 6pm on 23 March 2022.
We are in regular contact with business groups about the challenges businesses are facing and we will continue to keep the situation under review.