Chancellor Philip Hammond announced a number of measures that will affect small firms in the Autumn Statement 2016.

The key points from the Statement are:

• A new National Productivity Investment Fund (NPIF) will provide £23 billion of investment in housing, transport, digital communications and science and innovation by 2021/22.
• Further steps have been announced for the allocation of the Local Growth Fund, including up to £1.8 billion allocated through a third round of Growth Deals with Local Enterprise Partnerships.
• Arrangements for the Northern Powerhouse Investment Fund and Midlands Engine Investment Fund, which will begin making investments in 2017.

• A new Industrial Strategy Challenge Fund will support collaboration between business, researchers and the science sector. The fund will be managed by Innovate UK and research councils.
• Additional funding will be allocated to increase research capacity and business innovation, including a significant increase in grant funding available through Innovate UK.
• UK Export Finance (UKEF) will double its total risk appetite (the level of risk UKEF will take to achieve its objectives) to £5 billion and increase its capacity to provide support in individual markets by up to 100%.
• The number of pre-approved currencies in which UKEF can offer support will increase from 10 to 40 to enable more overseas buyers of UK exports to pay in their own currency.
• HM Treasury will lead a review to identify barriers to access to long-term finance for growing firms.
• The British Business Bank will invest an additional £400 million in venture capital funds to unlock up to £1 billion of new investment in innovative firms.
• Up to £13 million will be allocated to support firms to improve their management skills by implementing Sir Charlie Mayfield's review of business productivity.
• From April 2017 the National Living Wage will be set at £7.50.

• From April 2017, the National Insurance secondary (employer) threshold and the National Insurance primary (employee) threshold will be aligned.
• From April 2017, where the public sector engages an off-payroll worker through their own limited company, liability to pay the correct employment taxes will move from the worker's own company to the public sector body or agency/third party paying the company.
• A new 16.5% Flat Rate VAT rate will be introduced for limited cost traders (businesses with low cost bases) from 1 April 2017.
• The amount of investment social enterprises aged up to seven years can raise through Social Investment Tax Relief will increase to £1.5 million from 6 April 2017.
• From April 2017, most salary sacrifice schemes will be subject to the same tax as cash income.
• Rural business rate relief will be doubled from 50% to 100% from 1 April 2017.
• As announced at the 2016 Budget, the main rate of corporation tax will be reduced to 17% in 2020.

The Chancellor's speech in full and the Autumn Statement documents are available here:
https://www.gov.uk/government/topical-events/autumn-statement-2016

To read the Federation of Small Businesses' reaction to the Statement, go to:
http://www.fsb.org.uk/media-centre/press-releases/uk's-small-business-
community-see-today's-autumn-statement-as-modest-and-medium-term

To read the British Chambers of Commerce's reaction, go to:
http://www.britishchambers.org.uk/press-office/press-releases/bcc-gives-
full-reaction-to-chancellor%E2%80%99s-autumn-statement.html

To read the Forum of Private Business's reaction, go to:
https://www.fpb.org/blog/autumn-statement-our-members-2016

To read the reaction of IPSE (the Association of Independent Professionals and the Self-Employed), go to:
https://www.ipse.co.uk/news/autumn-statement-targets-self-employed-cash-grab