So there it is – the long trailed emergency Budget from the coalition government. Whether you consider it a Budget based on ideological choices or one based on necessity, one thing is clear – we’re in for a period of some considerable fiscal pain.

Or are we? The initial response to the budget seems to be mixed. While the social media space was abuzz with quick pronouncements long before the chancellor sat down, the press is starting to have its more considered say too. While some, like Polly Toynbee writing for The Guardian have used more poetic prose to express their disapproval (“…Lib Dem yellow ribbons decorated the axe handle, but they barely impeded the executioner’s swing.”) others have displayed more optimistic sentiments.

In fact, the consensus seems to be that we are all going to have to pay but not as much as we had feared. Economists estimate that, on average, we will all be £400 a year worse off.

From business point of view there seems to be some positives too. Markets have not shown any dramatic response – FTSE 100 slid down on yesterday’s close but no more than its daily fluctuation. What’s more, rating agencies have declared that Britain’s AAA status is safe.

Here then are some of the highlights:

• expected savings have been increased to an eye-watering £113bn – that’s £40bn more than the previous government’s already ambitious target of £73bn
• public sector borrowing will tumble from £149bn this year down to just £20bn in 2015-2016
• across most government departments, there will be average budget cuts of 25% over four years
• public sector will have to endure two-year pay freeze (effectively a cut in real terms when you take inflation into account)
• VAT will jump to 20%
• growth forecast for 2011 has been revised down from 2.6% to 2.3%
• capital gains tax will rise to 28% (from 18%)
• corporation tax will be cut to 27% in 2011 and then by 1% in each of the following years until we reach 24%
• small companies’ tax rate will also be reduced to 20%.

While social commentators and public policy experts argue whether this is a ‘progressive’ or ‘regressive’ Budget, economist will tell you that UK businesses will have to endure tough times for a good while yet. The reduction in public sector borrowing and investment will have a knock on effect on small businesses too. And in regions where the public sector is a major employer, the impact on both people and businesses is likely to be worse.

Certainly, talking to our small business web hosting customers, we see a fairly cautious approach to investment, recruitment and marketing. Managers are looking at more value for money channels (digital including social media) and dropping some traditional channels such as direct mail.

No doubt that over the coming months discussions about the possible impact of the Budget will fade as reality starts to kick in. In the meantime, our advice to our customers is simple – make your online presence a significant part of your marketing strategy.

Business startup · Social Media · Web Hosting

It may be due to the success of the reality TV shows such as Dragon’s Den and The Apprentice, or it may simply be the result of the recession, but it looks like that UK is now a nation of entrepreneurs.

According to a survey by the recruiter Kelly Services, more than one-fifth of respondents described themselves as ‘self-employed’ and one-in-five also said that they wanted to start their own business.

Certainly, as a UK web hosting company, we have seen a noticeable growth over the last couple of years in more and more people buying domain names and web hosting to launch new online businesses.

While this trend may well be a reflection of the lack of opportunities in the employment market, the internet has undoubtedly been a catalyst in encouraging people to discover their entrepreneurial side and helping them launch new businesses. Technology has lowered barriers to market entry, created a more level playing field and has effectively democratised business opportunities.

Registering a company could not be simpler or quicker. Simply Google ‘company registration’ and you’ll be presented with a plethora of companies where you can fill in an online form and within hours have your business registered with Companies House.

A further click of a mouse and you can secure a domain name and web hosting for your business. And now with web hosting companies offering easy-to-use tools such as Sitebuilder, you could, in fact, have a website up and running within a couple of hours.

So, if you see your self as the next Bannatyne or Meaden and want to test out your business ideas, you can do it today. Right now, in fact.

Business startup · Company registration · domain name · Sitebuilder · Web Hosting