by Andy Milsom, Head of Partner Training and Development, BNP Paribas Leasing Solutions
So now we know. After months of uncertainty we have a new government. I guess the question for all of us in business is what, if anything, will change?
The early signs would point to few, if any, significant fiscal changes for small businesses. There has been no suggestion that current rates of Corporation or Capital Gains Tax (including entrepreneur’s tax relief) will change, although the intention to rule-out any increases in personal tax rates or VAT will leave the government few options if it needs to raise money, as well as cut spending, to reduce the budget deficit.
I do believe, however, that in order to balance the budget within the timescale set, we will see an acceleration of private sector involvement in public services. If this prediction proves correct, IT resellers would be well advised to look for business opportunities that might arise from ‘new players’ in what was the exclusive domain of the public sector.
Also, keep an eye out for opportunities that might arise from the devolution of authority to the English cities. Manchester has already been promised significant new powers over spending and other cities will certainly follow. It has always been much easier for resellers to deal with local government than central government on the basis that they have a greater degree of buying autonomy and are more likely to recognise quality of service, as well as price, in any buying decision. Currently 75% of all government spending is by central government; as this reduces, new business opportunities will be available to resellers who keep their eyes and ears open.