For young people in London who are currently out of work and wanting to start a business, life just got a lot tougher! Whilst many have welcomed the first Coalition Government’s Budget as a boost to business, these words are mostly coming from those already in business and making profits. The NI C tax break will be great news for many, but not if you live in London and the South East. At the individual level, why should geography determine how easy it is to start a business?
The impact of a VAT rise to 20% from January 2011 will have a direct hit on the bottom line of the smallest businesses. They often don’t have the flexibility to increase their prices (if they did they would be out of business) so will have to take the 2.5% as a hit to their margins. Profitability will be squeezed as many businesses absorb some or all of the VAT rise.
Self-employment or starting your own business is a real option for those who are without an income at present but have the drive and determination to succeed. Such people will overcome the obstacles that are thrown at them, but that’s no reason to add to them.
At Bright Ideas Trust we help young people in London to start their own businesses. We have been supporting them during the recession (be ready to benefit from the upturn) and we will continue to support them, because we have seen what a tremendous difference it makes to individuals. Yes, it just got tougher, but we are up for the challenge and know that many young business people are too.
Andy
Tags: bright ideas, budget, business, challenge, emergency, george osboure, profit, start up, support, tax, Tim Campbell, VAT, young, youth
