News

The votes have been counted, the champagne popped (or hurriedly stowed away…) and the results are in: we have no results.

After last night’s general election, we are coming to terms with a hung Parliament and the most likely outcome of a Conservative government gleaned with the support of the DUP.

For the start-ups and small businesses in Wandsworth’s office spaces, change may only be visible at local level.

Wandsworth is divided into four seats: Battersea North, Battersea South, Tooting and Putney. In last night’s election, Tooting was held by Labour and Putney remained in Conservative hands but Battersea turned red – an unpredicted outcome for Labour candidate Marsha de Cordova who took the seat with a 4.4% majority.

Time will tell whether this Labour win has an impact at borough level. Otherwise, it looks like it’s business as usual in Wandsworth’s office spaces. Here is what you can expect under a diminished Tory governance.

Pro small business
Theresa May’s Conservatives claim to be on the side of small businesses. They want to encourage early investment, create incentives for small businesses to grow and aim to ensure 33 per cent of central government purchasing comes from SMEs by the end of the parliamentary session.

There are sanctions for big business: contractors must comply with the ‘Prompt Payment Code’ on their government contracts or risk forfeiting their right to bid on contracts in the future.

Tax
May has pledged to reduce corporation tax from 19 per cent (as it currently stands) to 17 per cent by 2020. This underpins a systemic ‘simplification’ of the tax system to make it more accessible for self-employed people and small businesses.

She also plans to review the business rates system, increasing the frequency of revaluations and incorporating self-assessment into the valuation process.

Helping employees
The Conservatives claim they will continue to increase the minimum wage to 60 per cent of median earnings by 2020.

They also want to help the self-employed and offer more protection against a ‘gig economy’ – a scenario in which temporary positions and freelance contractors thrive over full-time employees. This is dependent, however, on the findings of the Taylor report.

Good news if you run a tech company: a Tory government will “help digital businesses to scale up and grow” and safeguard access to digital infrastructure for both businesses and consumers.

Brexit
Brexit remains a decisive factor for small businesses. As predicted, the UK will no longer be a member of the single market or the customs union, but the Tories want to stay true to their pledge to negotiate a free trade agreement with the EU, and to form new trade agreements with non-EU countries.

May’s government will increase the Immigration Skills Charge two-fold to reach £2,000 per year, directly impacting small businesses that employ non-EU workers.

For businesses that take on ex-offenders, disabled people and those with mental health issues, they are offering a National Insurance holiday.