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 โBritain is open for businessโ and that the budget was only for โthose who want to work and get onโ.
But what does the Chancellorโs โBudget for an aspiration nationโ have for businesses? Here are the key points:
- Corporation tax cut by 1% to 20% from 2015. Chancellor dubs this as โthe lowest business tax of any major economy in the worldโ
- 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
- A fivefold increase in the value of government procurement budgets spent through the Small Business Research Initiative
- Infrastructure spending to be increased by ยฃ3bn a year
- Fuel duty increase planned for September scrapped
- Beer duty cut by 1p a pint
- New tax reliefs for the creative industries like high-end television and animation with new support for the โUKโs world-class visual effects sectorโ
- 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
- Abolition of stamp duty on AIM stocks
- Introduction of capital gains tax relief for sales of businesses to their employees
- 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 โhistoric achievementโ
- The government is in talks with the Bank of England for potential extensions of the Funding for Lending Scheme โthat will boost lending still furtherโ
- The government to name and shame companies who promote themselves as tax avoiders. Osborne pledged to introduce โone 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
- Thumbs up for School for Start Ups boss and ex-Dragonsโ Den Star Doug Richardโs recommendations on apprenticeships.
Follow our live coverage of the Budget 2013 all day on LondonlovesBusiness.com.
You need to read:
Budget 2013: Catch-up with analysis of and reaction to Osborne’s measures
Osborne read this! Budget 2013: What businesses need to grow
Do you think the Chancellorโs budget proves โBritainโs open for businessโ? Leave your comments belowโฆ
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