2014 is a big year for changes that will affect companies based in the Midlands; this article discusses the main changes that could indeed affect you. Luckily most of these changes will have a positive impact on Midlands business in a range of sectors. Read this article to find out if your business will be affected…
As an Initiative from the government, they are offering a variety of different financing and allowance options. This is designed to encourage start-ups as this will really help to regenerate our economy – so if you were thinking about starting your own business maybe now is the time! The latest offers include:
Loans and Financing
The Government are working with the Bank of England and Building Societies to provide loans at cheaper rates to SMEs (small and medium sized enterprises). This decrease in the interest rates will help businesses to get past the first few years of trading, which are the most risky for fledgling companies.
The launch of a new business bank which will be there to provide more funding to new business, again allowing more initial funding for the set up and running costs.
Allowances
‘Employment Allowance’ is being introduced this year to entitle businesses and charities to a £2,000 reduction in National Insurance contributions per year. This is a large chunk off small businesses’ outgoings that could give them the opportunity to grow and succeed.
Employment of persons under the age of 21 is also set to become more cost effective with the government due to abolish National Insurance contributions for employees under 21 years of age and earning under £813 per week.
With Midlands-based Bombardier winning the Crossrail contract this will bring lots of work into Derby, not just for Bombardier itself. The contract itself will bring in 760 new jobs to Derby as well as 80 apprenticeships until the first delivery of trains are due in 2017, with 80 more jobs remaining for the maintenance services. This massive amount of work that will be brought into the Midlands will help all manner of businesses from the smaller companies that supply to Bombardier to the money spent by employees in the local area. So, also great news for Bombardier and the companies that supply to them. This is particularly good news for the area; especially after losing out on the Thameslink contract not so long ago to Siemens.
According to Crossrail… “The jobs created through the rolling stock and depot contract it is estimated that Crossrail will generate at least 75,000 business opportunities and support the equivalent of 55,000 full time jobs right around the UK.”
It doesn’t seem long ago when the Eagle Centre was bought by Westfield, however it has been on the market again and bought by accompany called Intu. This is great for Derby and the surrounding area as this transaction can breathe new life into a thriving shopping centre surround by a struggling cathedral quarter. Westfield as it is now brings in 3,000 jobs to the area. However, after the birth of Westfield Derby; the chain has been blamed for taking shoppers away from the Cathedral Quarter causing many of the shops to be empty. Could this mean more trouble for the shops in the outskirts? Or is it going to be the miracle cure for the area? Only time will tell...
For businesses within the ‘Green’ sector based in Coventry and Warwickshire the ‘Green Bridge Supply Chain Programme’ has been allocated to them to promote the health growth of small and medium sized businesses that are specialising in renewable energy and low carbon technologies.
This eco-friendly initiative has created a total of 64 jobs in the area and encouraged the start-up, and nurtured the growth of business in this growing sector. Stage Six of the grant has now finished and the next stage is due to open, this means that if you are a business in the Coventry or Warwickshire area then you need to apply to be given the chance of benefiting from this great opportunity.
£1.2 million is currently being invested in regenerating Lincolnshire to help small to medium sized businesses. This is a new bid to create dozens of jobs and strengthen the business networks within the area. The money would be used for small to medium businesses to provide them fully comprehensive support on various aspects including creative, financial and strategic guidance. Companies that wish to participate in this scheme can apply for the grant of between £200 and £2,500.
Overall it seems like the future is bright for midlands based companies, providing they take full use of the opportunities ahead. Wanting to make the most of these new opportunities for your business? Make sure your social media campaign helps you open all the right doors… here is how: What To Blog About 11 Blog Post Ideas For Small Businesses
Article By: Katie Torrance
References
[1] https://www.gov.uk/government/policies/making-it-easier-to-set-up-and-grow-a-business--6
[4] http://www.midlandsbusinessnews.co.uk/500000-funding-given-coventry-warwickshire-businesses/
[5] http://www.insidermedia.com/insider/midlands/110772-12m-business-growth-lincolnshire