WNJ is taking part in a free local finance and homebuyer event which is being organised in Lancashire next month.

It will bring together a host of experienced professionals from across the area, including WNJ associate Stuart Iddon, to offer people free advice on a wide range of topics.

The event is taking place on Saturday June 17 at Heskin Hall at Wood Lane in Heskin and will run from 9.30am until 1pm.

Rachel Ramsay, whole of market mortgage broker from Cornerstone Finance Group, lives in Heskin and has brought together business owners and finance experts, including WNJ, to share their advice with attendees.

They include Home Truths sales and lettings agency based in Eccleston and Coppull and The Organising Sisters of Chorley, who offer bespoke home decluttering solutions and a home removal service.

They will be joined by ARW Wealth Management of Eccleston, Vincent’s solicitors of Garstang, Haynes and Haynes commercial finance, who are based in Shevington, Marta Evans, from Equity Release Associates, based in Parbold and Sirka Moore from Utility Warehouse in Leyland.

This is a free event, open to all and no ticket is required, just turn up on the day.

Whether you’re looking for financial or legal advice, guidance on purchasing a property for residential or commercial use, wanting to save money, advice on mortgages or later life lending or you simply want to find out more about the sectors involved then please come along.

The cost of energy continues to cause concern for small businesses. New figures show hundreds of thousands are trapped in contracts that mean their latest bills are at last summer’s peak market rate for energy – even though wholesale prices have fallen since last winter.

That is why The Federation of Small Businesses (FSB) is now urging energy suppliers to allow small firms locked into fixed tariffs from last year to renegotiate contracts to better reflect the significantly lower wholesale energy prices seen at present.

It comes after massive cuts to government support on energy bills for businesses. Since April 1, the Energy Bill Relief Scheme has been downgraded to the Energy Bills Discount Scheme.

The FSB says downscaled government support means small firms that signed up to fixed tariffs in 2022 will see their bills revert back to last year’s peak levels. This could be three or four times what they were paying when the more generous government support scheme was in place.

FSB’s latest research shows more than one in ten small firms fixed their energy bills between July 1 and December 31, 2022, during which businesses were quoted up to £1 per kWh for electricity.

Of this group, 13 per cent say they could be forced to either close, downsize, or radically restructure their businesses – that equates to 93,000 small firms across the UK.

FSB also says that a “significant proportion” of small firms stuck in fixed contracts are from the accommodation and food sector (28 per cent), and the wholesale and retail sector (20 per cent).

Four in ten small firms that fixed energy contracts in the second half of last year say it has been impossible for them to pass on costs to customers who had to tighten spending and can’t afford further price increases amid the cost-of-living crisis.

FSB is calling on energy suppliers to allow these small firms to extend their fixed contracts but at a blended and lower rate – between their original fixed rate and the current, lower wholesale rate.

It says the option to renegotiate fixed contracts should be made automatically available to businesses which:

• negotiated the new energy contract between July 1 and December 31 2022
• can confirm the level of wholesale price on the contract is above the EBRS wholesale price cap]
• can confirm the end date of the contract to demonstrate the length of exposure to higher prices from April 2023 onwards

FSB policy chair Tina McKenzie said: “Having come out from a tough winter, this spring is supposed to be the beginning of economic recovery, but tens of thousands are still very much in survival mode because they are tied-in to sky-high energy contracts.

“Many small businesses agreed to lock in energy contracts last year to ensure they qualified for the maximum level of Government support. Now, with that support largely disappearing, they are once again faced with massive energy bill hikes as rates go back to pre-Energy Bill Relief Scheme level.

“If ending the successful support scheme is on the basis that wholesale energy prices have gone down, then our research sheds light on just how many small businesses have been overlooked as they are entangled in high fixed tariffs.

“It’s disheartening to see a significant proportion of small firms could be forced to close, downsize or radically restructure their businesses just when we look to grow our economy. Our community shrank by 500,000 small businesses over the two years of Covid; we shouldn’t now be adding any more to that gruesome tally.

“The least energy suppliers should do is to allow small businesses who signed up to fixed tariffs last year to ‘blend and extend’ their energy contracts, so that their bills are closer to current market rates. We’d also like to see the Government and Ofgem support this initiative.

“There are signs that small businesses may be about to turn a corner after last year’s downturn. Giving small firms a way out of last year’s market peak rates will accelerate the progress to recovery.”

• To discuss any issues raised in this article please contact me on 01772 430000

The positive impact of a series of tax rises on government coffers has been revealed in new figures just published.

Statistics from HM Revenue and Customs (HMRC) show its total receipts for April 2022 to March 2023 were a record £786.6billion and £71.1bn higher than the same period a year earlier.

Income Tax, Capital Gains Tax and NICs brought in £440bn for Treasury – £47bn higher than the 2021-2022 total.

Business taxes, including Corporation Tax and the Energy Profits Levy showed overall receipts of £84.9bn, which is a £17.5bn increase year on year.

And when it comes to Inheritance Tax (IHT) records continue to be broken. Here, the total haul for 2022/23 reached £7.1bn, surpassing the previous record of £6.1bn set last year by £1bn.

That figure has sparked comments that IHT is ‘no longer for the wealthy’ and re-ignited the calls we reported on last month for reform and action to be taken on the long-frozen tax threshold.

The IHT nil-rate band, which is the maximum amount a person can inherit before paying the tax, has been stuck at £325,000 since 2009 – despite rising house prices.

Last November, chancellor Jeremy Hunt announced that the nil rate would remain frozen until at least April 2028, despite inflationary pressures.

And as we also pointed out, the IHT gifting allowance of £3,000 a year has remained unchanged since 1981.

Experts say that an ever-growing proportion of estates are likely to become liable to pay IHT, despite the slowdown in the housing market.

Estimates released at the Budget in March suggested that over the next five years IHT would bring in £38bn for the Treasury.

Given the latest figures it is worth repeating the message that there are ways in which the existing IHT regime can currently benefit your own estate planning and ensure a fairer distribution of your assets through your family.

As with most tax issues the key here is to start your planning early and to get a good handle on your estate. Having a clear strategy is also important.

The £3,000 a year annual gift allowance is good place to start. So is reviewing your will and making sure your assets will be dispersed the way you wish. Ask yourself the simple question: “Is my estate planning up to date?” If not, now is the time to act.

Meanwhile, figures show that homebuyers paid £1bn in Stamp Duty land tax in March, an increase of 19 per cent on the previous month. In cash terms, that is a rise of £164m.

This is another tax where records are being broken. Across the 2022-23 tax year £15.4bn was paid out in, an increase of nine per cent on the £1.3bn the previous year.

However, this is expected to drop sharply in the 2023-24 tax year. The Office for Budget Responsibility for has forecast a 4.7bn fall as a result of the anticipated lower numbers of property transactions.

• To discuss any issues raised in this article and any tax issues please contact me on 01772 430000

For the first time in a year business confidence in the UK has returned to positive territory, according to the latest Institute of Chartered Accountants in England and Wales (ICAEW) quarterly survey.

But the situation still remains “fragile” amid the ongoing economic volatility. Firms remain concerned over future sales, high inflation and rising interest rates, according to the organisation’s Business Confidence Monitor (BCM).

Confidence in the first quarter of 2023 rose to 2.5, up from -23.4 in the previous quarter, but still sits below the historic average of 4.9 for this time of the year, according to the survey.

Businesses expect input price inflation to soften in the year ahead, the BCM found, following four consecutive quarters of record increases that peaked in this quarter.

Selling-price inflation hit another record high in the first quarter but is also expected to ease in the year ahead to its lowest level since Q1 2022, as concerns grow over customer demand. Firms also expect salary growth to stabilise over the next 12 months.

One in five companies said they were increasingly troubled by the lack of availability of management skills, while one in three cited issues with the availability of non-management skills. Staff turnover was a problem for a third of businesses.

Meanwhile, domestic sales growth slowed to its lowest level since Q3 2021, with a further easing expected in the year ahead.

Exports rose at a slightly slower rate than domestic sales, with the rate of growth stable across recent quarters and unlikely to slow in the year ahead, possibly due to a weaker exchange rate.

As profits and domestic sales growth slowed, capital investment rose by 2.4 per cent, down from the 3.4 per cent rise a year ago.

And looking ahead the survey revealed businesses plan an increase of just 1.8 per cent, which would be among the slowest rises in a decade, excluding the declines during the pandemic.

Michael Izza, ICAEW chief executive, says that after an uncertain year it is encouraging to see business confidence return to positive territory. However, he warns that there is still plenty for companies to be cautious about as they grapple with high inflation, rising interest rates and slowing sales.

He says: “While financial and economic challenges have eased slightly, they are still having an impact on specific sectors. Customer demand, meanwhile, remains a big problem for businesses across the board.”

Construction and property companies were the least optimistic, with negative readings on the index. Organisations in these sectors were also most likely to be impacted by financial challenges, including rising interest rates and limited access to capital.

The construction sector was particularly hard-hit, reporting the most widespread problems with customer demand.

However, confidence across all other sectors returned to positive territory, with businesses in manufacturing and engineering, and energy, water and mining being the most confident.

One of the greatest challenges facing businesses was customer demand, amid the continued cost-of-living squeeze. ICAEW believes an “ambitious plan” from government is needed to build on the optimism and boost business confidence.

Michael Izza adds: “With confidence still fragile, the government must fix the fundamental problems with the economy with a plan to deliver long-term economic growth by injecting resilience and stability into the UK.”

• To discuss any of the issues raised in this report and the impact they may be having on your business please contact me on 01772 430000

Chancellor Jeremy Hunt today delivered what he called a ‘budget for growth’ with a series of measures aimed at improving productivity and innovation.

They included a range of incentives looking to encourage businesses to invest and grow and moves to get more people back into work.

He declared his budget would achieve growth by “removing obstacles that stop businesses investing; by tackling labour shortages that stop them recruiting; by breaking down barriers that stop people working; and by harnessing British ingenuity to make us a science and technology superpower.”

Mr Hunt went on to announce a policy of “full expensing” for businesses for the next three years and with an intention to make it permanent.

He told the Commons: “That means that every single pound a company invests in IT equipment, plant or machinery can be deducted in full and immediately from taxable profits. It is a corporation tax cut worth an average of £9 billion a year for every year it is in place.”

For smaller businesses, the Annual Investment Allowance is being increased to £1m, meaning 99 per cent of all businesses will be able deduct the full value of all their investment from that year’s taxable profits.

There will be additional tax support to help research and development intensive SMEs. For every £100 spent on R&D, eligible companies will be able to claim £27 back, helping them to invest in more R&D.

Mr Hunt also announced that fuel duty will be frozen and a 5p reduction will be maintained for a further year.

He also unveiled a raft of measures aimed at increasing the UK’s workforce. They include what he described as the “biggest change to our welfare system in a decade”, with reforms aimed at supporting more disabled people into work.

He announced plans to increase the pensions’ annual tax-free allowance from £40,000 to £60,000 along with abolishing the Lifetime Allowance – previously set at £1.07m.

Mr Hunt said that move would incentivise “our most experienced and productive workers to stay in work for longer”.

Focusing on the over-50s, he said he would increase the number of people who get “mid-life MOTs” from the Department for Work and Pensions, helping them assess their financial situation.

A new apprenticeship scheme, called “returnerships”, will be introduced for over-50s wanting to return to work in a new sector.

He went on to unveil reforms in childcare aimed at helping parents get back into work. These include an increase in funding for nurseries.

Mr Hunt also announced 30 hours of free weekly childcare is being extended to cover children below the age of three – as long as both parents are working at least 16 hours a week. It will eventually cover all children from the age of nine months.

The chancellor said: “We have one of the most expensive systems in the world. Almost half of non-working mothers said they would prefer to work if they could arrange suitable childcare.

“For many women, a career break becomes a career end. Our female participation rate is higher than average for OECD economies, but we trail top performers like Denmark and the Netherlands.

“If we matched Dutch levels of participation, there would be more than one million more women who want to work, in the labour force. And we can.”

The government will also fund schools and local authorities to increase supply of wraparound care so all parents of school-age children can drop their children off between 8am and 6pm.

Mr Hunt also announced 12 investment zones, which he said can be new ‘Canary Wharfs’. Areas chosen include Greater Manchester and Liverpool.

In other initiatives £400m will be available for new “levelling up partnerships” in areas including Blackburn.

The rate of price rises, or inflation, is forecast to fall to 2.9 per cent by the end of 2023, according to the Office for Budget Responsibility (OBR).

Mr Hunt told the Commons the government was on track to halve inflation, get debt falling and grow the economy.

He said the OBR is now forecasting there will be no technical recession, adding: “We are following the plan and the plan is working.”

The chancellor also confirmed that the energy price guarantee will remain at £2,500 until July.

The government will also add a total of £11bn to the defence budget over the next five years and it will be nearly 2.25 per cent of GDP by 2025.

To encourage investment, nuclear power will be classed as “environmentally sustainable”, subject to consultation. That move will give it access to the same investment incentives as renewable energy.

The chancellor will also allocate up to £20bn for the early development of carbon capture and storage.