Government rule change boosts home-based businesses

15th August 2014


Britain is a nation of budding entrepreneurs and from today the government is making it easier to set up a business from home.


The number of self-employed has risen dramatically since the recession as people lost their jobs and full-time work still hard to come by. The majority, 70%, of new businesses start off in the home and there are currently 2.9 million home-based businesses in the UK, contributing £300 billion to the economy.


The government has announced today that it is overhauling the rules around running a business from home in order to boost the number of people setting up a company.


Under new legislation, the government will make it easier to run a business from a rented home. The law will change so that landlords can be sure a tenant running a business from the address will not undermine their residential tenancy agreement. A new tenancy agreement will also be introduced.


Changes to the planning law will ensure planning permission should not normally be needed to run a business from home and new business rates clarify that in the majority of circumstance, home-based businesses will not attract business rates.


Business minister Matthew Hancock said home businesses ‘fire up the economic engines and create jobs’ but also ‘turn dormitory towns into living communities’.


‘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,’ he said.


‘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.’


According to Emma Jones, founder of Enterprise Nation, one in 10 domestic properties are now the home to at least one business.


‘These are not people starting businesses our of necessity through lack of jobs, they are part of a growing movement that is responding to the new opportunities technology brings and actively taking control of their own destiny by starting out from home,’ she said.


‘They are hard-working people who now have the capability to trade globally from their own kitchen table. They are growing through outsourcing work to other home-based individuals and as they do so, they are bringing important employment opportunities to rural as well as urban areas of Britain.’


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