A quick round-up

• The basic rate of income tax will be cut to 19p in the pound from April 2023. 
• The 45% higher rate of income tax is to be abolished.
• It was already announced that April's National Insurance hike is to be reversed from 6 November - saving money for businesses and 28 million workers. The 1.25 percentage points increase was introduced under former chancellor Rishi Sunak.
• Stamp duty to be cut from "today". Nothing will be paid for first £250,000 of property's value - double the current amount allowed. The threshold for first-time buyers is to be increased from £300,000 to £425,000. The value of the property on which first-time buyers can claim relief is to also go up from £500,000 to £625,000.
• Household bills to be cut by an expected £1,000 this year with aid from energy price guarantee and £400 grant. 
• Total cost of energy package, including business support, over next six months estimated at £60bn. 
• Treasury estimates tax cut measures will cost nearly £45bn a year in 2026.

Michelle Ovens CBE, founder of Small Business Britain stated: “The focus on entrepreneurship in today's Growth Plan statement is good news for small businesses, and a hugely encouraging step towards supporting this key part of the economy in a tough financial climate.  

"The energy plan already announced, cutting prices for small businesses and addressing some of the astronomical rises we have seen this summer, will give businesses some reassurance over the winter months, even if there are still questions over the long term plans. 

"There is no doubt that rolling back national insurance rises, IR35 regulations and the planned corporation tax rise next year will be welcomed by small businesses and the business community more widely. In the medium to long term, this will support and encourage entrepreneurial growth, which is very welcome.

"However there remain serious challenges in the short term as entrepreneurs battle with rising costs across all areas of the business, not just in energy and tax. Finance, input prices, export and staffing all remain challenging and we continue to see businesses failing at a high rate with little to fall back on after a very difficult few years. More will need to be done at all levels of society and government to ensure the 5.6 million small businesses in the UK can weather this winter and make the most of the supportive policies announced today. 

"The direction of travel is absolutely right for small businesses. This now needs to be delivered by us all.” 

Gavin Poole, CEO, Here East remarked: “In the face of a pessimistic economic landscape, we must find reason to feel positive about the future. The creation of Special Investment Zones will attract talent, investment and spearhead growth for the regions around the UK that need it most. Having been a part of the evolving journey of East London since 2012, we know that private and public sector collaboration is crucial – and the government must not forget to listen to the communities that will sit within these regions.

"The Chancellor’s proposal to extend the Enterprise Investment Scheme will be popular in the entrepreneurial community. This should ensure that investment in the UK’s start-ups continues on its upward trajectory – providing meaningful careers for future generations at the forefront of the tech and creative sectors.

"It's promising the government has moved quickly to lay a roadmap for growth – but we will be watching the delivery and outcomes of this plan with a keen eye.”

Phil Dawson, Managing Director and Founder of Lily Arkwright, a sustainable jewellery retailer said: "We really welcome a lower corporation tax rate, ultimately higher business taxes result in higher prices for consumers which isn’t a good thing and will exacerbate current inflation woes. It's good news for us that energy bills are being capped, although it's a real shame it's come to this after years of ridiculous policy which promotes newspaper headlines vs tangible action by the government."

Philip Linardos, Co-Founder and CEO of ShelfNow, an intelligent B2B online marketplace stated: "As a business working with hundreds of SME partners across the country, we welcome the introduction of the Energy Bill Relief Scheme which will offer some support for smaller businesses who are set to be disproportionately affected by the ongoing energy crisis. We also welcome the freeze in corporation tax at the current time as this will reduce the burden on already overstretched SMEs that are struggling with margins.

“It is, however, disappointing to see no pledge made to reform fuel duty as this would benefit both our food & beverage producer and buyer partners by reducing product fulfilment costs and ultimately reducing costs for consumers too. We would also welcome an immediate overhaul of business rates to support our struggling High Street partners and we would urge the government to reconsider this over the coming weeks and months."

Trevor Hope, CIO at Gresham House Ventures, commented: “We view the announcement of the Government’s continued support for Venture Capital Trusts (‘VCTs’) schemes and value of extending them beyond 2025 as positive. This will provide long-term stability to VCTs, which currently contain over £6bn of capital and play an important role in supporting SMEs, bringing benefits in terms of employment and economic growth around the UK.

“We look forward to hearing further detail on the policies in today’s statement and remain enthusiastic to continue discussions with the Government to ensure VCTs can continue to support promising UK businesses.

“Gresham House manages and advises the Baronsmead and Mobeus Venture capital trusts, representing over £800m of funds, supporting over 70 fast growing and innovative small and medium sized companies.”