The autumn budget, COP26 Summit and a hold on interest rate rises – what does it add up to for local businesses, asks Complete Commercial Finance’s Karl Lanham

For many companies, autumn signals the last big push of the year and a chance to get business done before the days run out, but the big news for all in recent weeks has been the outlook for 2022 and beyond.

The chancellor, global leaders and even the Bank of England have been forecasting the issues that will affect us all in the coming months and years.

Chancellor Rishi Sunak delivered his budget on October 27, which he says will deliver a stronger economy to rebuild the nation, post-pandemic.

Along with an increase to the national living wage and an overhaul of business rates, including a new, 12-month relief for firms to invest in their own premises, there was also an extension of the increased rate of annual investment allowance (AIA).

Companies can claim up to £1m expenditure on eligible plant and machinery costs under AIA with a 130 per cent super-deduction reducing their tax bill by up to 25p for every £1 they invest.

This allowance was due to expire on December 31, but will now run to March 31, 2023.

Other ‘gifts’ were an extension to the Recovery Loan Scheme, allowing businesses to borrow up to £2m with 70 per cent government backing until 30 June, a freeze on fuel duty and a simplification of alcohol duty - a decision most of us will raise a thankful glass to!

However, a VAT rise to 20 per cent is still planned for April 2022, a move many companies will lament.

Following the Chancellor’s spending spree, there was plenty of cautioning at COP26, the UN’s climate change conference in early November.

As we transition to a decarbonised economy, the pressure is on all businesses to accelerate their path towards becoming net zero by 2050.

In our own region, the Holkham Estate is already committed further to being carbon negative by 2040 and we are beginning to see many other companies focus on making their operations sustainable.

Financing the step changes required is a major challenge on the journey ahead, and while the market is always led by innovators there is a growing number of lenders offering commercial finance to help businesses switch to being 'green'.

If you are grappling with this area of your business’ future, give us a call to discuss sustainable finance solutions.

Finally, on November 4, the Bank of England voted to hold the current record low rate of 0.1 per cent in light of global economic performance, but signalled it will raise interest rates in the coming months.

While these will remain low, with many businesses struggling with supply chain and staff shortages along with soaring energy costs, the move would aim to temper inflation.

So what does this amount to for local firms? At the risk of sounding like a broken record, the need to plan ahead is ever key.

By taking a long-term view of your business and assessing its needs over the next couple of years, you will be best positioned to charter challenging times.

Finance solutions actioned today may help to minimise rising costs, investment in plant or machinery can take advantage of unprecedented tax relief, and embarking on a sustainable business plan will ensure your company helps to protect the next generation and beyond.

If you make one thing your priority this month, make it looking after your business’ future.

For more information, contact Karl Lanham at Complete Commercial Finance on 01553 611619 or visit ccf.finance