Home Business NewsEconomic NewsBudget 2013: What did the Chancellor's red box have for businesses?

Budget 2013: What did the Chancellor's red box have for businesses?

by LLB Editor
20th Mar 13 2:45 pm

Chancellor George Osborne was booed in the House of Commons today as he announced that growth in 2013 would be 0.6%, half the 1.2% he announced with aplomb in the Autumn Statement.

He insisted that โ€œBritain is open for businessโ€ and that the budget was only for โ€œthose who want to work and get onโ€.

But what does the Chancellorโ€™s โ€œBudget for an aspiration nationโ€ have for businesses? Here are the key points:

  1. Corporation tax cut by 1% to 20% from 2015. Chancellor dubs this as โ€œthe lowest business tax of any major economy in the worldโ€
  2. New employment allowance to cut national insurance bills by ยฃ2,000 for every firm. This means 450,000 small firms will pay no employer national insurance
  3. A fivefold increase in the value of government procurement budgets spent through the Small Business Research Initiative
  4. Infrastructure spending to be increased by ยฃ3bn a year
  5. Fuel duty increase planned for September scrapped
  6. Beer duty cut by 1p a pint
  7. New tax reliefs for the creative industries like high-end television and animation with new support for the โ€œUKโ€™s world-class visual effects sectorโ€
  8. Chancellor promised to double the size of the loans that employers can offer tax-free to pay for items such as season tickets for commuters
  9. Abolition of stamp duty on AIM stocks
  10. Introduction of capital gains tax relief for sales of businesses to their employees
  11. Personal allowance to be raised to ยฃ10,000 from next year, not from 2015 as originally planned. That means people will be able to earn ยฃ10,000 without paying tax. Osborne called this a โ€œhistoric achievementโ€
  12. The government is in talks with the Bank of England for potential extensions of the Funding for Lending Scheme โ€œthat will boost lending still furtherโ€
  13. The government to name and shame companies who promote themselves as tax avoiders. Osborne pledged to introduce โ€œone of the largest ever packages of tax avoidance and evasion measures presented at a Budgetโ€. Agreements with the Isle of Man, Guernsey, and Jersey will bring in over a billion pounds of unpaid taxes
  14. Thumbs up for School for Start Ups boss and ex-Dragonsโ€™ Den Star Doug Richardโ€™s recommendations on apprenticeships.

Follow our live coverage of the Budget 2013 all day on LondonlovesBusiness.com.

Do you think the Chancellorโ€™s budget proves โ€œBritainโ€™s open for businessโ€? Leave your comments belowโ€ฆ

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