ParcelHero’s Little‑Shop Take on the Budget
In a nutshell, the latest Spring Budget let a lot of small shops play a game of “who gets the next slice of the pie?” Unfortunately, the table was left empty.
The Mighty Silence that Costed More Than Words
Head of Consumer Research at ParcelHero, David Jinks, yelled on his loudspeakers, “This Budget was a one‑winged bird! If we’re honest, many of us SMEs were waiting for a laugh and a lift, not a sob.”
What Was Expected (and What Wasn’t Delivered)
- Business Rates Reform
Government kept doodling over a map of business rates without drawing a clean line. Shops and pubs still pay a hefty chunk of their turnover to rates based on rental value. The promise of an extra £200 m for the Recovery Loan Scheme was a drop in the ocean.
- Tourist Tax (or the lack thereof)
The VAT‑free shopping that used to sweet‑en travellers’ hearts has vanished since Jan 2021. Now tourists get no VAT rebate, leaving local retailers with a vanishing checklist of shop‑located profits.
- Hospitality Tax Cuts
The pubs and bars who hailed a £12.5 % VAT self‑care back in the good old days are still stuck with a 20 % rate. Even a freeze on alcohol duty won’t keep a lonely gastropub tearing off its curtains.
Small Wins in a Government “Not‑So‑Grand” Summary
There were a few silver linings:
- The VAT registration threshold will climb from £85 k to £90 k – still a long hop to the coveted £100 k.
- Full expensing for capital investments gets a new “lease‑friendly” twist, though the government’s “as‑soon‑as‑we‑can” plea suggests the tax‑holiday shelf might open in a few months.
- £270 m earmarked for zero‑emission vehicles and clean aviation tech feels like a tickler for courier businesses eyeing greener footprints.
In Summary: The Budget of the “What Wasn’t Announced”
All in all, the Budget delivered a muted encore for the SME community. Investors still live with “cost‑of‑living” conundrums, and most retailers must lean on strong in‑store and online sales to survive the greasy tilt of the market. The next stage will be a retread of what goes on the shelves, not the headlines.
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