Here we go again. The election is ramping up and the media are dissecting every statement and promise in search of a great headline. Behind all that though, both main parties have made several promises in manifestos and statements about how they will help business if they have someone in Downing Street. As we have said many times, politics isn’t our business… but business is. So, let’s take a quick, impartial, look at what both parties have said and what it could potentially mean for businesses going forward.
jump to content

Election 2024 and Business – What is on the Table from Both Main PartiesPosted: May 29, 2024

Here we go again. The election is ramping up and the media are dissecting every statement and promise in search of a great headline. Behind all that though, both main parties have made several promises in manifestos and statements about how they will help business if they have someone in Downing Street.

As we have said many times, politics isn’t our business… but business is. So, let’s take a quick, impartial, look at what both parties have said and what it could potentially mean for businesses going forward.

 

Before we look at policies though…Just a quick thought about Capital Gains tax.

The financial situation driven by the pandemic, inflation, war in the Ukraine and other factors, will almost certainly mean one thing. Whoever wins the election is going to find the coffers rather empty. That is likely to mean they will need to bring in the money to fund their election promises. One seemingly obvious source would be Capital Gains tax.

If you are a business owner and you are thinking of retiring and winding up your business, then now may well be the right time to talk to use about those plans. If, as seems likely, there is a change to Capital Gains tax, you could find yourself paying a lot more. There is no guarantee that it will change of course, but it does seem to be a tax that neither party is talking about or making promises on and therefore in my view makes it more likely. Take a look at our Members Voluntary Liquidation section for more information or download or free guide. Better still, book in for a free consultation and let’s see where you would stand now if you decided it was time to retire and close your business.

 

Labour Party Business Policies

The Labour Party, seems to be focusing on fostering sustainable growth, supporting small businesses, and promoting fair practices. Several of the key aspects of their business-related agenda so far include:

 

 

Some thoughts:

While there is a very specific targeting of SMEs with some very nice sounding promises (I am sure the idea of stricter regulation for late payments will raise a little cheer if you are an SME trading with some of slower payers in the corporate world), Green economies tend to come at a price and that could be passed down the supply chain financially and as process changes. Recent changes in minimum wage have impacted businesses already, so the thought of a further wage increase could be a concern. What the corporation tax overhaul would mean is yet to be seen, but, on the surface at least, this sounds promising. Possibly the most revolutionary thing on offer here is the idea of a national bank that would fund projects in underdeveloped areas and other innovative projects.

 

Conservative Party Business Policies

The Conservative Party core approach to business seem focused more on creating a business-friendly environment through tax cuts, deregulation, and support for innovation. Key points of their business-related agenda include:

 

 

Some thoughts:

The Conservatives aim of increasing investment by cutting taxes is an interesting one but there is possibly a question of how overseas investment will see the higher wages and therefore production costs in the UK. I am sure many industries that suffer from skills gap problems will welcome the idea of more investment in vocational and apprenticeships routes though. Deregulation is a hot topic as post Brexit regulations in particular have prompted a rise in costs for many businesses with ties to Europe. Investment in the infrastructure will be welcomed by many people, both business and private individuals, and the goal of ensuring all regions can participate in economic development seems promising.

 

Conclusion – What do the election promises mean to business right now?

Well, honestly, not a lot for the short term. Elections tend to slow the market a little in the wider sense and there is also naturally some impact on planning for any potential increases in the cost of employment and similar. At the highest level of investment, overseas money may well be less available, and some banks could be a little nervous about lending. Overall, though, on a day-to-day basis, until we see these policies in place, our advice is stay in lane. Focus down on what matter now to keep the cash coming in. It's probably a good time to revisit your cashflow (we have a survival guide for that) and perhaps run some scenarios based on potential changes. If there is going to be a period of uncertainty, then now would also be a good time to look at your credit control.

Elections make great news and they’re good for conversations around the water cooler. Until the policies roll out though, the best option if your business is struggling is to focus on now. Several of these policies may well help you in the long run, but they are months and maybe years away, so beware of clutching at straws when the problems are more immediate. Call us or book an appointment online if you need help.

Back

transparent gif

Rob Cross, Another High-Profile Lesson About Paying HMRC

If you do things right, then being a limited company director may well offer some protection from your company's ... more

Understanding Insolvency in UK Community Interest Companies (CICs)

Despite their good intentions, Community Interest Companies (CICs) are no more immune to insolvency than any other ... more

Paying Tax to HMRC – Beware of the False Economy of Late Payment

UPDATED - HMRC CHARGES HAVE NOW BEEN REDUCED IN LINE WITH THE RECENT BASE RATE CHANGE, AS WE PREDICTED IN THIS ... more

Restricted Funds, Insolvency and Charities – Understanding the Facts

Over the years, we have dealt with many charities with financial issues, and one of the least understood areas is ... more

Unusual Market Disruptions – Resilience, Wake Up Calls and When to Seek Help

Remember when unpredictable market conditions were rare occurrences? Don’t misunderstand me, the ... more

The Importance of a Secure Supply Chain – A Lesser Know Cause of Insolvency

A secure and reliable supply chain is fundamental to a business’s survival. Whether you are a ... more

Debt Awareness Week - Understanding Financial Challenges

The purpose of Debt Awareness Week is to encourage open conversations about financial struggles and provide ... more

Insolvency in the Third Sector – Why Do We Have a Specialist Support Service?

Charities and other third sector organisations are just as susceptible to insolvency as private companies. ... more

Now is the Time to Review Your Credit Control – Keep Watching the Road

With what looks like a very difficult time ahead, reviewing your credit control now could be the difference between ... more

Retiring and closing your business – How do you decide when is the right time?

When a long-standing business is closed under an MVL, retirement is far and away the most common reason. Closing ... more

Changes for Business in April 2025 - Will the KBO approach be Enough?

In October last year, a budget was delivered that will have repercussions for business throughout the coming year. ... more

Insolvency Practitioners and Commercial Disputes – How We Can Help

When you are faced with business disagreements over payments, contracts, or other areas such as the management of ... more

Insolvency for Societies – What Happens When the Social Club Needs to Close?

Sadly, organisations that come under the Co-operative and Community Benefit Societies Act 2014, are just as prone ... more

Autumn Budget 2024 – An Insolvency Practitioners viewpoint one week on.

Capital Gains Tax and Entrepreneurs Relief – A change as we predicted. In our previous blog , we looked ... more

What does it mean for insolvency and business? - First thoughts on the Autumn budget

The Autumn budget wasn't exactly a friendly one for SMEs. Whether it will lead to more insolvencies and financial ... more

JSL Notices - Are HMRC becoming more aggressive when it comes to Tax avoidance and Evasion?

There was a relatively large rise in the number of Joint and Several Liability (JSL) Notices in the last year. ... more

Insolvencies Rise in the Building Sector – Are the Foundations Crumbling?

According to recent data from the Insolvency Service, the construction sector remains one of the industry areas ... more

UPDATED - The Debt Relief Order (DRO) rules are changing – Better or Worse for Those in Debt?

According to Charity Debt Justice, around 6.7 million people in the UK are considered to be in financial ... more

Zero hours to day 1 – Should your business be planning for changes to the law?

In the run-up to the election, the current government made some very clear promises that could have quite an effect ... more

Members Voluntary Liquidations – A tax target in October?

There is always bound to be a question about when it is the right time to push the button on a member's Voluntary ... more

Choosing an Insolvency Practitioner – The Human Touch

When you are responsible for a business that is facing insolvency, or potentially facing personal financial issues ... more

Election 2024 and Business – What is on the Table from Both Main Parties

Here we go again. The election is ramping up and the media are dissecting every statement and promise in search of ... more

John Barnes Media Limited insolvency – A reminder that HMRC do not take non-payment lightly

What happened between John Barnes Media Limited and HMRC? According to the Insolvency Service news, John Barnes ... more

Fixtures and fittings and all the stock - What exactly is an ‘asset’ during insolvency?

One of the actions taken during an insolvency is for the company assets to be sold to help pay debts. This is ... more

Budget 2024 – Spring in the air or a wet summer ahead?

The politics of a budget are not really in our area of interest, to be honest. The motivations behind decisions ... more

Closures and recessions – Are things that bad when you look behind the numbers?

There have been a couple of dramatic looking statistics about company closures and recessive economies recently. ... more

Changes to the Members Voluntary Liquidation process – what do they mean?

HMRC have issued an update to how Members Voluntary Liquidations (MVLs) are processed. The change is quite a shift ... more

Not so merrily on the High Street – How retailers can respond to a low sales Christmas

According to the Office of National Statistics (ONS), retail sales fell 3.2% in December 2023. With a harsh outlook ... more

Looking back on 2023 – A year of challenge for UK business

Christmas is around the corner, and the last bell is about to ring for 2023, so it’s a good time to sit back ... more

Well-meaning sometimes isn’t enough – Insolvency and charities.

We are all aware that a business can become insolvent - but what about the over 168,000 charities currently ... more

The Chancellors autumn statement – hint of spring or cold winter ahead?

This year the Autumn statement was a bit of a mixed bag for business and individuals. National insurance giveaways ... more

2024 – does a financially difficult year for you mean a tough year for business?

Do personal finances impact business finances? When you run a business, one of the first things any of your ... more

The increase in insolvencies – What is of root cause of the jump in numbers?

The jump in insolvencies in September follows a similar increase in August. However, there was a drop in July. So ... more

Birmingham is not bankrupt – Understanding bankruptcy and insolvency.

Bankruptcy and insolvency are not the same thing, but they are closely related. Maybe that is why they are ... more

Much like the current summer weather, the outlook for the economy is not great. So, what should businesses be doing right now to stave off some of the effects of the economic instability?

Weather forecasting - Strategies for business in UK's Challenging Economy

Economic sunshine and showers. We have gotten used to having a more Mediterranean style summer in the last few ... more

Claiming redundancy for directors - Important changes to the process

It often still comes as a surprise to directors when they learn that they can claim redundancy. If you meet the ... more

Knowing the cobbles – Is it better for your Insolvency practitioner to have local knowledge?

Does being local matter? After all, insolvency is about logic and process, isn’t it? To answer that ... more

We have been informed by the Insolvency Service that an email from a fake email address, 'info@theinsolvencyservice.co.uk' claiming to be Chris Pleass (Director) and possibly intended to build up to an attempt to defraud the agency, has been circulating.

Warning: Insolvency Service impersonation

              Warning: Insolvency Service ... more

Very few surprises and a few worries – Some thoughts for business about the Spring budget 2023

The recent budget may well have not been much of a shake up for the economy but it did contain some things to need ... more

Getting jumpy about bounce backs – Is a bounce back loan going to get you disqualified as a director?

Can I be disqualified as a director over a Bounce Back Loan? Let’s deal with the big questions first. In ... more

No surprise but it still stings – Now is a good time to think about Members Voluntary Liquidation

What happened with Capital Gains Tax and MVLs? To be clear from the outset if you are thinking of closing your ... more

Frantically paddling against fast water or going with the tide? - Looking back on 2022

A year of financial white water 2022 started with a lot of hope, didn’t it? By the end of January Covid ... more

Less than Festive – Sharp increases in hospitality insolvencies pre-Christmas

What’s going on in Hospitality? You cannot help but feel for pubs, restaurants, and other venues. It must ... more

A tax to be paid – Changes to the way HMRC view writing off a director’s loan account during insolvency.

It isn’t unusual that a director of a company will have an outstanding director’s loan account. If that ... more

More than knowledge – What to look for in an Insolvency Practitioner

What makes a good Insolvency Practitioner? There are some fundamental skills and experience that should really ... more

Wasps, the well known Coventry based rugby club, have filed the intention to appoint administrators with the high court. So, is that the end of the line for the team and its supporters?

Intent to file administration by rugby club Wasps - What does it all mean?

What does ‘intent to appoint administrators’ mean? If you have been keeping up with the news ... more

Is your business going through a bad patch or insolvent? – Red light and green lights

Green, amber, and red lights of insolvency If we were to make a list of things that directors usually tell us ... more

The voices of doom – Don’t panic, things may not be as bad for business as they sound.

How bad are things for business? You can’t help but notice that the economic news is pretty grim at the ... more

Personal guarantees – Where do you stand and what do they mean to your finances?

Personal guarantees can be a problem when a business becomes insolvent, and directors are often concerned about ... more

If the economy is so bad, why aren’t we seeing a flood of insolvencies?

What happened to the insolvency crisis? Back in what now feels like aeons ago during 2021, there were rumblings ... more

Resilience and down to earth assessment – Dealing with the rise in business costs

The cost of business crisis. Without knowing your expenditure, it is almost impossible to make a sound judgement ... more

Full disclosure matters when it comes to debts, bankruptcy, and insolvency.

The importance of honesty. There is nothing the press likes more than a celebrity scandal and former Wimbledon ... more

BBL anxiety - Should you be worried about Bounce Back Loan consequences?

You have probably seen various stories in the press about Directors of businesses being caught out because they ... more

Time for a change? If you are considering solvent liquidation, now may be the time.

Why do people consider a Members Voluntary Liquidation? Unlike insolvency, which is driven purely by financial ... more

All things come to an end – The end of temporary insolvency measures.

When the insolvency legislation was temporarily changed during the pandemic, I suspect there was a widespread sigh ... more

Once more around? – Things to think about coming out of the pandemic.

I heard a wonderful phrase to describe the current situation the other day. Someone said they would be glad when ... more

Riding the roller coaster - why cashflow should now be at the top of your priority list

If you run a business and don’t currently have cashflow planning at the top of your agenda, you probably ... more

Winter is Coming!

Yes, for those of you that watched ‘Game of Thrones’ you will appreciate that this is the threat of bad ... more

Beware HMRC collections will be returning to normal SOON.

As you will appreciate, during the pandemic HMRC has been very busy dealing with the various support schemes, ... more

An End to the Temporary Insolvency Measures – Almost but not Completely

Companies in financial distress as a result of the pandemic have been protected from creditor action since last ... more

Wrongful trading, Insolvent trading – What is it and what does it mean?

When a Company fails it is quite common that directors are excused of Wrongful or Insolvent trading. Wrongful ... more

Government Extends Help Again but are we just kicking the problem down the road?

This is the fourth time I have written about the Government extensions of the insolvency provisions brought in ... more

What to do about your Bounce Back Loans (BBLs) Part 2 – What if you cannot pay it.

I the first of these BBL articles we looked at your options if you are struggling to pay your Bounce Back Loan ... more

What to do about your Bounce Back Loans (BBLs) – Part 1

Bounce Back Loans are becoming a big problem area and we may only be scratching the surface of the impact they may ... more

The Government has announced a new scheme to help individuals with debt problems. The scheme is described as ‘Breathing Space’ and comes into effect on 4 May 2021.

New Scheme Announced for Individuals with Debt Problems.

The Government has announced a new scheme to help individuals with debt problems. The scheme is described as ... more

I also think it is fair to say that Pre-Pack sales by an Administrator have had a high level of press coverage. All the evidence suggests that a Pre-Pack sale commonly leads to a better return to creditors than a forced sale shut down. But equally, creditors are understandably concerned because the sale is conducted very quickly following the appointment of the Administrator and often, they are the last people to hear about it. This concern is always worse when the sale is to a connected party.

Pre-Pack Sales to Connected Parties – The New Evaluator Process

First of all, it is fair to say this blog is very technical and probably more for our professional contacts, so if ... more

The Insolvency Service produces monthly figures for both corporate and personal insolvencies and as mentioned previously, I rarely comment on them. Partly because insolvencies are seasonal, so generally increase in the first and third quarter of the year and decrease in the second and fourth quarter and partly because there is not much to talk about.

Latest Insolvency numbers are released for March 2021.

The Insolvency Service produces monthly figures for both corporate and personal insolvencies and as mentioned ... more

The answer to the question ‘when is a good time to close your solvent business’ is never an easy one. However, with capital gains tax and asset disposal relief both still working in your favour, if you are looking to close your solvent business then 2021 or early 2022, may well be the time to make the move. If not, you could see a much less favourable tax landscape in the future.

Good news for those planning a Members’ Voluntary Liquidation (MVL)

The answer to the question ‘when is a good time to close your solvent business’ is never an easy one. ... more

Groundhog Day - Government Extends various measures to assist struggling business

Why Groundhog Day you ask? Over the last 12 months, I have posted about various Governments measures brought in ... more

VAT Deferrals – What can you do now if you still have not got the funds to pay?

Believe it or not, it has been almost 12 months since businesses in the UK were first given an answer to the ... more

Budget 2021 – Thoughts from an Insolvency Practitioner

Like most people, I get several excellent emails and budget summaries every year and I would guess you do too. ... more

The Insolvency Service produce monthly figures for both corporate and personal insolvencies and to be honest I rarely comment on them. Partly because insolvencies are seasonal so increase in the first and third quarter of the year and decrease in the second and fourth quarter and partly because there is not much too talk about. 
   
 However, I feel that there is a clear trend and whilst on paper the trend appears to be good news it hides several issues which will hit the economy later in the year.

Company Insolvencies in January 2021 50% lower than January 2020, but is this good news?

The Insolvency Service produce monthly figures for both corporate and personal insolvencies and to be honest I ... more

Smart Business Recovery is pleased to welcome a new member of the team

Meet Sharon – an old and new colleague.

If you have been reading our blogs or social media recently you will probably have noticed that we are very busy at ... more

Looking ahead isn't always easy but despite 2020 begin one of the most unusual years ever for many of us, there are some signs of stability ahead.

Some optimism, some hope and a big dollop of realism – Insolvency and business in 2021

I am already on the third draft of this blog. Every time I managed to get pen to paper the Covid situation or ... more

Over the last few days, a number of extensions have been announced which it is hoped to assist business affected by COVID 19. These are as follows;

Government Extends various measures to assist struggling business

Over the last few days, a number of extensions have been announced which it is hoped to assist business affected by ... more

Will I get my money? The order of payment for creditors.

There is no such thing as a simple way to close a business. Whether it is an administration or a liquidation, the ... more

What’s left for you? What will the change to HMRC preferential creditor status really mean to SMEs?

Up until the early 2000s HMRC were a preferential creditor in cases of insolvency. When this changed in 2003 it was ... more

The Government Announces new rules regarding Pre-pack sales to be implemented.

The Government Announces new rules regarding Pre-pack sales to be implemented.

The Government has announced that new rules will be brought into legislation as soon as possible. The following was ... more

Government gives businesses much-needed breathing space with extension of insolvency measures

UPDATED 26 NOVEMBER 2020 The Government has announced extensions to previous temporary measures relating to ... more

Taking stock – Are your customers stock levels a threat to your cashflow?

There is a potential situation arising that could soon be causing some insolvency related issues, cashflow problems ... more

Changes to the regulations surrounding insolvency could spell trouble for SMEs. This article takes a look at what some of these changes are and the impact they could have on cashflow.

Supplier beware – Credit control and the Corporate Insolvency and Governance Bill 2020

Insolvency legislation rarely makes the news which is probably why one of the biggest changes to the way it works ... more

Dividends, Overdrawn Loan Accounts and Insolvency - Updated

This is a very common problem in insolvency and here is the reason why!! At some stage, a director of a new ... more

Keep your cashflow forecast up to date – 5 tips and 1 warning

Why then are we bothering to dedicate a full article and video to cashflow forecasts if they are so common? Well, ... more

Since the Covid-19 pandemic insolvency has been on the minds of many business owners. Pressing the panic button is unlikely to be the right response though.

Am I insolvent? – Why pressing the panic button may not be the best idea.

The initial shock of the lockdown. When the government announced the Coronavirus lockdown our telephone began to ... more

Bankrupt, Insolvent or in need of rescue?

  What happens when you reach out to an Insolvency Practitioner?   I doubt any business owner ... more

Employee rights is an insolvency

What are employees entitled to in an insolvency process?

One of the major aspects of any insolvency is what will happen to the employees. Any news story in relation to an ... more

transparent gif
footercall

Find out more about how we can support you when times are tough. We’re here to help with clear, straightforward support.

Call us on 0116 2325117 (Leicester), 01926 671891 (Warwick), 02476017639 (Coventry), 01604 263179 (Northampton) or email us at info@smartbusinessrecovery.co.uk