George Osborne delivered a somewhat safe and disappointing Autumn Statement to Parliament last week which offered no immediate good news for small businesses or start-ups.
It was only last month that the Prime Minister declared Britain was in the midst of an 'economic war', but the measures set out by Osborne failed to address the urgency of such an announcement.
In a year where the growth forecast for the economy was slashed and the government failed to significantly tackle joblessness, this was Osborne's chance to act and introduce immediate reforms to stimulate growth and kick-start Britain's economy.
Instead of delivering the chunk of optimism that Britain's businesses desperately need, the Chancellor diminished any hopes of economic recovery with a glum admission that this year the economy will have shrunk by 0.1%.
Osborne failed to seize the opportunity to provide financial certainty to hard pressed businesses by capping the annual rates increase at 2%. This will come as a damaging blow to many small businesses who are struggling to stay afloat.
In his statement, Osborne confirmed the creation of a £1 billion business bank to help SMEs achieve finance. When initially announced this was heralded as a step in the right direction but with little detail provided about the bank it seems that this could just be another a headline initiative.
If executed well the business bank would provide support and access to funding for SMEs but Osborne failed to provide any real details about the direction the bank will take and who it will benefit. There was no information given about how firms will be able to access the funds, how long the application process will take and, crucially, who will be eligible.
As many entrepreneurs and SMEs have found, the problem is not that the banks have no money to lend but rather that there is far too much red tape to negotiate, thus making the process a drawn out one with 101 qualifying conditions.
Ideally, what SMEs need instead of the proposed business bank are low rate, profit-linked lending to small businesses from banks and lending institutions. Alongside this, tax incentives for large corporates to trade directly with SMEs with a maximum 30 day payment structure are also needed to ensure suppliers receive money quickly and efficiently.
The general feeling amongst SMEs in the aftermath of the statement is rather muted. A recent survey of We Trade It members revealed that 89% do not think that the Government is doing enough to support SMEs with 96% admitting that they have little or no confidence in the Governments strategy to solve the current economic problems; sadly Osborne's statement did little to change their opinions.
However there was some welcome news in the statement with Osborne performing a U-turn on his decision to cut the annual investment allowance which means firms will now be able to claim 100% tax relief on capital investments. He also announced a 10-fold increase in allowances on capital spending for SMEs such as tools, office equipment and commercial vans up to the value of £250,000.
The announced cuts in corporation tax and the increase in plant and machinery allowance are also encouraging for larger businesses and companies from outside of the UK looking to set up in Britain but do little for our small business. With rising business rates, energy bills and employment costs, the challenge facing small local businesses is how to make taxable profits in the first place.
Ultimately the Autumn Statement lacked innovation, forward thinking and leadership when what Britain needed is urgency, scale and delivery. Osborne failed to deliver a clear plan of action that details how he will deliver the support that Britain's SMEs desperately need. With this in mind, the Budget next March must make truly radical and large-scale choices that support long-term growth and wealth creation not hollow promises. This means prioritising SMEs and ensuring that reforms are not only relevant but immediate.