Last updated Dec 04, 2023 and written by Admin

SME and Company Formation Budget Backlash

While the budget has been well received by the majority of the company formation and SME sector. The government’s plan to increase the minimum wage from £5.80 to £5.93 has divided

popular opinion.
While many small business owners feel that the fact that the increase is only marginal reflects the government’s acknowledgment, that most small businesses are still facing daily financial

challenges. However there has been some negative feedback to the changes from some business owners.
Jeff Bridges, spokesperson for the FSB comments; “While our members appreciate the fact that the government has been conservative in the amount by which they have increased

minimum wage. The fact that they have increased it at all has been met with some negativity by certain groups. Small businesses have been on the front line of recession and the have

endeavour to train and keep staff throughout the downturn. The fact the government has increased minimum wage at the same time as deciding not to retract their plans to increase National

Insurance, gives additional weight to the argument that the government don’t listen to what the SME sector wants.”
Mr Bridges comments lead us on to another grievance the SME sector has articulated against the chancellor’s 2010 budget – namely the fact that the government still plans to go ahead

with their plans to increase national insurance, despite widespread negativity and a petition from the FSB, imploring them not to do so.
Neil Smith, head of a recruitment company, comments; “This year’s budget is definitely an election year budget; it has some short-term voter friendly initiatives, however, it lack significant

detail, and the fact that the government has failed to acknowledge, let alone act on the FSB’s petition to retract plans to increase national insurance, shows how out of touch they are.”