07/03/2024
I wanted to voice a challenge faced by many small businesses in the food and hospitality industry regarding Chancellor Jeremy Hunt’s new 2024 spring budget announcement. When asked to share my opinion, which I believe resonates with numerous SMEs, I was happy to do so.
I expressed the hope for the Chancellor to raise the VAT threshold. However, the increase of just £5,000 to £90,000 was a disappointment. While it’s a step in the right direction, it benefits relatively few SMEs. I anticipated at least a raise to £100,000.
Additionally, I had hoped for a reduction in the VAT level from 20% to 10%, but unfortunately, this wasn’t on the agenda. Such a reduction would have significantly helped small businesses in the food sector. Many of us buy zero-rated ingredients, but we can’t simply pass the 20% VAT costs onto the customer, so we have to absorb it, which is financially challenging. Together with inflation, we are being squeezed from both sides and simply need more help.
Full article below with additional insights from others sharing their views:
https://www.dailymail.co.uk/news/article-13163259/amp/Jeremy-Hunt-Budget-2024-vaping-housing-tax-responses.html
