Philip Hammond delivered his Autumn Statement this week, setting out some measures intended to boost business confidence, particularly on housing, tax and investment.  Ignition Director, Paul Caunter, explores what these changes will mean for SMEs:

“Whilst not necessarily ground-breaking, there are a few measures introduced by the chancellor this week that will be welcomed by UK SMEs. Specifically, many smaller firms will see their business rates stay the same or even decrease, now that calculations will be based on the lower Consumer Price Index (CPI) rather than the Retail Price Index (RPI).

Good news for growing companies is the announcement of an Action Plan to unlock £20 billion of new investment in UK scale-up businesses, which includes a new £2.5 billion fund administered by the British Business Bank (BBB).  The BBB’s successful Enterprise Finance Guarantee (EFG) programme has also been expanded for a further four years and expanded to £500m per year.  Ignition has access to this successful scheme, which can guarantee loans for business assets where there is little or no security in the purchase, and no security provided from the owners of the business, but can demonstrate the ability to service the proposed loan.

Measures to stimulate housebuilding, with targets to build 300,000 new homes per year, will be well-received by firms in the construction industry, as will plans to invest in infrastructure.  Locally in Cornwall, a £79m investment into a new A30 link road near St Austell will enable local growth and improve connectivity in the region.

Motorists are being persuaded to take the greener option, with investment in infrastructure for charging electric cars.  There’s a blow to any businesses with a fleet of diesel company cars, however, who will see a new vehicle excise duty (VED) applied and a rise in the existing Company Car Tax diesel supplement from 3% to 4%.

Finally, the Government announced plans to publish two consultations on lease taxation, responding to the recent introduction of IFRS 16, the new accounting standard for leasing.  As a leading vehicle and asset finance provider for UK SME’s, we’ll be keeping a close eye on these consultations and will keep our customers informed of any relevant developments.”

For further information or advice on any of these points, don’t hesitate to contact the Ignition team on 01872 272900.

Don’t just take the finance offered by your dealer. Speak to us before purchasing your next vehicle!  A simple phone-call could get you a much better deal.

We’re currently offering a super-low car finance rate of just:

5.3% APR Fixed Rate*

• No Fees – just a £10 option to purchase
• New and used cars up to 5 years old
• Terms 24 – 60 months
• Minimum balance to finance £10k

*Representative Example:  Hire Purchase payable by an initial payment of £426.56 followed by 58 payments of £426.56 and a final payment of £436.56, including £10 option to purchase fee.  Payments are based on a duration of Agreement of 60 months, a Purchase Price of £25,000 with a Deposit of £2,500, leaving an amount of Credit of £22,500.  The Agreement is calculated using a Fixed Rate of Interest of 2.75% per year resulting in Representative 5.3% APR with a total amount payable of £28103.60.

Call the Ignition team to find out more on 01872 272 900

Ignition, a leading provider of vehicle and asset finance for UK SME’s, has made the Western Morning News Fast Growth 75 list for the fourth year running, this year climbing 32 places to 19^th position.

Compiled in partnership with accountancy firm KPMG, law firm Stevens Scown and Shawbrook Bank, the list is the ‘who’s who’ for businesses in the Devon and Cornwall region that have grown and expanded, creating jobs and wealth. Out of the 75 companies listed, only 5% are from the financial services industry, and Ignition is the only vehicle and asset finance provider.  The Truro-based company is actually positioned 7^th on the table out of businesses based in Cornwall.

The Western Morning News article stated: “The annual guide is a snapshot of the regional economy – it shows who is leading the way and the sectors that are reaping the rewards for all the investment they have put in to innovation, identifying new markets, people and infrastructure to build their businesses.”

To be included in the list, companies needed to have a registered office and to operate from Devon or Cornwall, have a turnover greater than £100,000 in the first of the four years’ accounts reviewed and over £1 million in the latest year, and have a consistent reporting structure throughout the four years.   All the companies that met these criteria were then ranked by mean sales growth over the four-year period to arrive at the final list of 75.

Ignition’s Director, Alan Tutte commented:
“The Fast Growth 75 list is historically fairly fluid, with companies dropping in and out while they expand and re-group. This year over half the companies listed were not listed last year.  The fact that we’ve been included four times, and have jumped up to 19^thposition, demonstrates our ability to continually build on our success.  It’s all down to the strength of our team, our commitment to the business, and the excellent service we offer our customers.”

To view the full list of companies, click here.

Whether you’re a new start-up company or seasoned trader, it’s important to have your business running like a well-oiled machine.  Click here to find out how we can help you.