Small Businesses: Employment
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the Autumn Budget 2024 on the (a) number of family businesses and (b) employment levels within those businesses.
Answered by James Murray
The Government inherited a difficult fiscal situation and so we are asking businesses to contribute to fixing the foundations and our public services. As part of the decisions made at Budget, the Government assessed the impact of measures introduced on businesses, including by size of business.
The Government has protected the smallest businesses from the impact of the increase to Employer National Insurance by increasing the Employment Allowance from £5,000 to £10,500.
The Government also announced changes to inheritance tax, including reforms to business property relief (BPR). The Government has protected smaller family businesses from BPR changes, providing a very significant level of relief with the first £1 million of business assets continuing to receive 100% relief and then 50% thereafter. In 2021-22, the median value of assets qualifying for business property relief was £200,000, and 87 per cent of estates claimed for business property below £1 million.
The Office for Budget Responsibility’s October 2024 forecast, which takes into account impacts from policy measures announced in the Budget, expects the employment level to increase from 33.1 million in 2024 to 34.3 million in 2029.
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