Budding entrepreneurs will be given greater freedom to start and grow a business from their home under new measures announced by the government on 15 August 2014.
Around 70% of new businesses start off in the home, and they contribute £300 billion to the economy. As part of its long-term economic plan to back businesses, the government wants to make it much easier for people thinking of starting a home business to do so with the law firmly on their side.
The new measures announced include:
- The law will be changed so that landlords can be assured that agreeing to home working by tenants will not undermine their residential tenancy agreement. A new model tenancy agreement will also be made available shortly;
- updated planning guidance will make it clear that planning permission should not normally be needed to run a business from your home; and
- new business rates guidance will clarify that in the majority of circumstances home based businesses will not attract business rates.
The Business Minister Matthew Hancock announced the package at the first ever Home Business Summit, organised by the small business network Enterprise Nation, at the Enterprise Wing of Somerset House in London.
Business Minister Matthew Hancock said:
“There’s never been a better time to start a business, and even more people are choosing to start up from home.
It’s this spirit of personal endeavour and self-determination that is driving our economic recovery. But home businesses don’t just fire up the economic engines and create jobs, they turn dormitory towns into living communities, they keep our streets safer, and by driving down car emissions, cleaner too.
We know that starting up any business can also be hugely stressful and that’s why today I am announcing that the government will change the law to make life easier for Britain’s home businesses. We’ll give people the confidence they need to run a business from a rented home, making sure that the majority of home businesses are exempt from business rates and our aspiring entrepreneurs have the information they need to start up and grow.”
Interesting statistics:
- There are already 2.9 million businesses being run from entrepreneurs’ homes.
- Home based businesses contribute £300 billion in annual turnover to the UK economy.
- If 1 in 10 home businesses took on just 1 extra employee it would create 300,000 jobs.
On the face of it home based businesses can take encouragement from these announcements. Let’s hope that these will be the first of a number of initiatives to encourage entrepreneurs to take the plunge.