Budget 2017: Red tape reforms ease costs for small co-operatives
KEY audit demands that cost smaller co-operatives thousands of pounds are to be lifted, the Chancellor announced in his Spring Budget today.
The Chancellor announced that thousands of pounds will be lifted from small co-operatives
The move stands to make them more competitive by putting them on a par with other types of business.
Co-operatives with a turnover of more than £5.6 million or assets over £2.8 million were required to conduct a full audit.
The move will make small businesses more competitive
It is very welcome to see the Chancellor helping to level the playing field for smaller co-operative businesses
But the change will double the threshold at which an audit is required to £10.2 million in turnover or £5.1 million in assets.
This could save co-ops in the affected category between £5,000 and £10,000 a year.
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This could save co-ops in the affected category thousands of pounds per year
The reform has been championed by Co-operatives UK, the network for the UK’s thousands of co-operative businesses.
Its secretary general, Ed Mayo, said: “It is very welcome to see the Chancellor helping to level the playing field for smaller co-operative businesses.
Ed Mayo welcomes that the Chancellor is helping to level the playing field
"There are 7,000 co-ops up and down the country giving people ownership of the things that matter - their work, their homes, their local areas. We have been arguing for the reform announced today. Its introduction will make life easier and provide a significant saving for a range of co-ops.”