Home businesses stand to benefit from new measures being introduced by government that aim to give greater freedom to people who want to start a business from home.
Businesses run from the home account for 59 percent of all start-ups in the UK, according to the Department of Business, Innovation and Skills (BIS). Many of those are likely to be digital companies that are able to operate purely off a computer, without the need for space-consuming manufacturing equipment or extensive storage facilities.
Speaking today at Somerset House in Central London, business minister Matthew Hancock will today announce the Home Business initiative in a bid to support the 2.9 million home-based businesses in the UK, which generate £300 billion for the UK economy every year.
The initiative involves introducing new legislation that cuts the cost and bureaucracy associated with running a business from home.
For example, entrepreneurs will no longer be required to fill in planning permission forms to run a company out of their home. Many home-based companies will also being exempt from paying business rates and the government said it will release a new tenancy agreement that will make it easier to run businesses from rented accommodation.
The government hopes to see a surge in the number of home-entrepreneurs as a result of the new measures.
“There has never been a better time to start a business and even more people are choosing to start up from home,” Hancock said ahead of the announcement.
“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 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.”
Up to 300,000 new jobs could be created in the UK if one in 10 home businesses took on one additional employee, according to a small business survey carried out by BIS.
Will Butler-Adams, MD of Brompton Bicycle, said: “The first Brompton bike was designed in a flat overlooking the Brompton Oratory in Kensington. Today, we make more than 50,000 bikes a year and export to over 44 territories worldwide. It’s great that new support is now available to help people with a vision and ambition to follow in Brompton’s footsteps and start and grow a business from home.”