Five ways the Autumn Statement will affect the channel
Apprenticeship levy, business rates and the Government Digital Service all key parts of today's announcement
Chancellor George Osborne laid out his spending plans this afternoon in the Autumn Statement. National security and housing were among the issues to top the agenda, but a number of other announcements were made which could make a significant impact on the channel.
Apprenticeship boost
Apprentice schemes are extremely popular in the channel, with vendors and resellers alike opting to invest in them in a bid to bridge the skills gap.
By 2020, the government wants there to be three million apprentices working in the UK. Osborne (pictured) laid out a number of measures designed to meet this goal in this afternoon's statement.
"To make sure they are high-quality apprenticeships, we'll increase the funding per place," he said. "As a result, we will be spending twice as much on apprenticeships by 2020 compared with when we came to office."
A new apprentice levy will come into force in April 2017, set at 0.5 per cent of an employer's pay bill. Every employer will receive a £15,000 allowance to offset against that levy, which Osborne claims will mean 98 per cent of businesses - and all firms with pay bills of less than £3m - will not pay the levy at all.
Investment in the Government Digital Service (GDS)
The GDS is home to frameworks such as G-Cloud and Digital Services and is also charged with encouraging the use of digital services across government in a bid to save cash. One of the body's key goals is to avoid massive, long-term IT contracts with tech giants in favour of smaller ones with a variety of suppliers.
In today's address to parliament Osborne said the department will benefit from an extra £450m investment. The Cabinet Office budget - of which GDS is a part - will be cut by 26 per cent though, he said.
Regional growth
Most of the UK's biggest resellers are based in London or the south east, but thousands more operate successfully across the country.
The so-called Northern Powerhouse has been on the agenda for a while now, but in today's statement, Osborne pledged to spread the investment across more areas of the UK.
"We are also today setting aside the £12bn we promised for our Local Growth Fund and I am announcing the creation of 26 new or extended Enterprise Zones, including 15 zones in towns and rural areas from Carlisle to Dorset to Ipswich," Osborne told parliament.
"But if we really want to shift power in our country, we have to give all local councils the tools to drive the growth of business in their area - and rewards that come when you do so. So I can confirm today that, as we set out last month, we will abolish the uniform business rate."
Investment in technology
Double-digit budget cuts were announced across a number of departments by Osborne today, meaning many will be expected to do more with less. Channel firms have already benefited from public sector bodies looking to technology to help them do this, and the cuts announced today could increase this.
Osborne said one example of how technology can help the public sector save money is in the justice system.
"Under-used courts will be closed, and I can announce today the money saved will be used to fund a £700m investment in new technology that will bring further and permanent long-term savings, and speed up the process of justice," he said.
Business rates
The government was cheered by many businesses last year when it cut corporation tax to 18 per cent. But in today's statement, Osborne laid out plans he claims will help smaller businesses too.
"Businesses need competitive taxes," he said. "Our overall review of business rates will report at the Budget, but I am today helping 600,000 of our smallest businesses by extending our small business rate relief scheme for another year."