It is good that the government decided to scrap the idea of closing HMRC’s helplines for half a year – but if they are staying open, things need to improve.
If I were the chancellor, I would review the current staffing levels for HMRC and see what investments could be made to end this needless cycle of delays.
Champion SMEs and entrepreneurs
Small and medium-sized businesses are the lifeblood of the UK economy.
In 2023 there were 5.5mn of them, representing more than 99 per cent of the business population.
However, some of these businesses will not be around for much longer unless they get the help and attention they both need and deserve. Last month, more than 2,000 company insolvencies were registered in England and Wales.
If I was the chancellor I would introduce fresh measures to support SMEs, starting with addressing their cash flow challenges.
This could involve setting up a new payment initiative for large companies and government agencies that will guarantee faster payments for SMEs.
I would also try to tackle the issue around debanking. A report by the Treasury committee reveals how small businesses are being mistreated by banks. In the past year alone, more than 140,000 have been debanked.
We are also seeing loan approval rates fall drastically, and more business owners are being forced to use their personal assets as collateral.
Instead of turning their backs on businesses in their time of need, we must see more government-backed schemes that ensure fair access to low-interest loans for SMEs. Otherwise, the incentive for entrepreneurs to start their own business will quickly disappear.
Opening a bank account also needs to be faster, especially if the government is serious about attracting new inward investors into the UK.
It is shocking that an overseas business can incorporate a UK subsidiary company, register it for tax, VAT and payroll within a short time, but they cannot open a bank account for months and months.
To entice more overseas investment to create new jobs and wealth, this is an issue that needs to be fixed sooner rather than later.
Streamline trade with the EU
It has been four years since the UK left the EU, and both businesses and consumers are still paying the price. In fact, two thirds of respondents to a British Chambers of Commerce survey say trading with the EU is now more difficult than it was a year ago.
It is a trend that we are very much seeing with our own clients.
Getting goods through the hard border that now exists between the UK and the EU – as well as the reporting that is required – has become a significant barrier to growth for many exporters, particularly those selling goods to consumers.
