Once upon a time, Spring Statement day was fun
Once upon a time, Spring Statement day was fun. Now, as an early-stage entrepreneur, it just fills me with dread, writes Michael Martins in today’s Notebook
An early-stage entrepreneur’s dream Spring Statement
I used to love Spring Statement Day. During my first job at the Institute of Directors, we’d take bets on which Cabinet career was ending, argue over the optics and the politics, then hammer out a press release – no Google Docs, no Microsoft Teams, just speed, instinct and exceptionally talented colleagues. We were usually the first business voice in the media.
Fast forward to today, and Spring Statement day fills me with a different emotion: dread. As an entrepreneur, I watch not for big ideas, but for the next tax hike. Which incentive is about to be kneecapped? Which line item will quietly torch my return on investment? Which tax hike will definitely “save the NHS” this time?
Most business owners could fill a whiteboard with tax complaints. But if the Chancellor is serious about growth, she should start by speaking to people who’ve seen both sides – former politicos who now build things. We understand what it takes to carry a political party and a balance sheet.
Here are three changes she could announce today that would make entrepreneurs up and down the country love her.
First, increase the dividend allowance. Successive Conservative Chancellors slashed it from £5,000 to a pitiful £500. If you want founders to take risks, stop punishing them for turning a profit.
Second, raise the WFH allowance and index it to inflation. £6 a week is basically a Pret coffee subscription nowadays. Small firms can’t afford offices, and hybrid work allows them to grow, hire and punch above their weight.
Third, make corporation tax relief for small businesses more transparent. If a small business ends up making more than £50,000 in profit, they are faced with a pricey jump in tax from 19 per cent to 25 per cent because as far as I can tell, there is no actual way to qualify for relief.
These aren’t flashy policies, but they’re fair, overdue and pro-growth. The current tax system treats early-stage entrepreneurs like ATM machines. That’s not a growth strategy – it’s a slow suffocation.
Starmer gets nod from diplomat crowd
I was at a diplomat colleague’s wedding this weekend and I was struck that many of the diplomat corps attendees approved of Starmer’s handling of President Trump (although many had also heard snide commentary coming back from DC about the UK’s new ambassador to the US, Lord Peter Mandelson).
It seems that Starmer has managed to convince much of the diplomatic community that he has finally found his feet on the international stage, even if it did take a bit of political theatre and the help of the King.
I miss summer 2020
This past weekend marked five years since our first lockdown, and I found myself reflecting on one of my happiest summers during London’s reawakening in June 2020. London was affordable, the weather was glorious and life was simple. I’d hop between parks and usually unaffordable restaurants during Eat Out to Help Out, while climbing onto the property ladder – stamp duty was on holiday, and I’d saved a lot during WFH. I knew the moment was fleeting, but from a personal finance standpoint, that period was a windfall amidst a dark global backdrop.
I wish everyone cared about business taxes like they do tariffs
Excluding the most ardent MAGA supporters, most people see tariffs for what they are: taxes on trade. I’m not surprised that the arguments about tariffs are one-sided, with most commentators arguing to lower tariffs, but I am surprised that that logic doesn’t seem to apply to taxes on business. Corporation tax is now 25 per cent, but when some of the world’s most successful companies were founded, it was 15 per cent. Imagine the brave politician that followed the standard “the UK needs more Amazons and Googles” speech with “and that’s why we’re cutting business taxes”.
Fan of This American Life? Watch How To with John Wilson
I recently reconnected with a long-lost cousin who put me onto How To with John Wilson – a strange, brilliant show offering tips on things like “how to make small talk” or “how to find a parking spot”.
Filmed in pre- and early-pandemic New York, it’s never clear if it’s satire, sincere or both. It has the same magic as early This American Life – huge, human stories spun from tiny moments. In one episode, Wilson tries to boost his memory and ends up at a Mandela Effect conference in small town Idaho, surrounded by people convinced they remember history differently then everyone else. Watch it to learn how to have a quiet night in, especially now that Severance is over.