All importers of the affected products could benefit from the
suspension of tariffs on the likes of flowers, leather, fruit
juices, and car parts, among others – as the Business Secretary
sets out plans to back British manufacturing to help grow the
economy.
The changes, made possible by our post-Brexit trading freedoms,
are expected to help make smaller firms more competitive and
support economic growth.
It comes as small businesses, industry leaders and Cabinet
Ministers including the Prime Minister gather in Warwickshire for
the first SME Connect tomorrow [Monday 18 March].
Around 150 SMEs and business groups like the Federation of Small
Businesses are due to attend sessions from how smarter regulation
can support businesses, to how businesses can harness the
potential of AI, and will meet with the Prime Minister and
Cabinet Ministers including the Technology Secretary and
Education Secretary.
They are expected to discuss the ongoing work that government is
doing to support small firms – including the recent changes
announced at the Spring Budget to increase the VAT registration
threshold to £90,000 from 1 April 2024 which will take around
28,000 small businesses out of paying VAT altogether.
In a speech to delegates the Business Secretary will announce that the
state-owned British Business Bank will launch a Northern
Powerhouse Investment Fund which will be worth £660 million - a
new fund to boost SMEs in the North of England through access to
loans and equity.
CBE will also be announced as
the Chair of the SME Digital Adoption Taskforce. He carries with
him a wealth of knowledge and experience across the industry and
is a well-respected figure across digital markets. He will
spearhead efforts to SMEs adopt digital technology such as AI to
rocket boost their productivity. The members of this taskforce
will be set out shortly.
This builds on the Government’s Help to Grow initiative which
offers free business advice to SMEs to help them start, grow, and
succeed. This includes management courses, help to access
funding, and webinars that explain the basics of setting up a
company.
Taken together – this is a significant step in the Government’s
plan to deliver the long-term change the UK needs to deliver a
brighter future and improve economic security and opportunity for
everyone.
Minister for Enterprise, Markets and Small Business
said:
“We’re harnessing the freedoms of Brexit to drive down import
costs for SMEs importing goods like flowers, car parts and
leathers and help to deliver better value for money for
consumers.
“Around 99.9% of all firms in the UK are SMEs which is why we’re
focused on ensuring they have the support needed to grow and
thrive.”
The government already has a strong record of backing British
businesses – including by cutting taxes, removing barriers to
growth and providing new opportunities with key trade deals, and
improving access to finance, skills and support.
The recent formation of the SME Council, the freezing of alcohol
duties in the Budget to help pubs and providing £1 billion of
loans via the British Business Bank – have all reaffirmed the
government’s support to small businesses.
SME Connect will offer SME business leaders from around the UK
direct access to Ministers and Government officials and will
display the support from across Government to them all in one
place.
They will receive support and advice on key areas crucial to
growth and productivity such as access to finance, skills and
education, as well as innovation and technology.
The Prime Minister is also expected to announce a major package
of reforms to support small businesses and deliver more
apprenticeships in his first economic speech since the Spring
Budget tomorrow.
NOTES TO EDITORS
Products that will have import tariffs suspended until 2026
include:
- Agricultural product applications, such as fruit juices,
flowers, preparations, and starches
- Non-agricultural product applications, such as chemicals,
ceramics, leathers, and car parts
A full list will be published soon. The Government expects these
measures to enter into force on 11 April.
Process for receiving applications
- Between 12 June 2023 and 6 August 2023, HMG invited
applications from stakeholders across the UK and Crown
Dependencies for new tariff suspensions on goods primarily used
as inputs in domestic production. HMG considered applications
against the core criteria derived from The Customs Tariff
(Suspension of Import Duty Rates) (EU Exit) Regulations 2020
(Suspensions SI) and other considerations, such as the impact on
domestic producers and consumers, and other HMG objectives
