Britain is open for business was the message from Chancellor George Osborne at yesterday’s Budget.
“We want the words ‘Made in Britain; created in Britain; designed in Britain; invented in Britain’ to drive our nation forward, a Britain carried aloft by the march of the makers.”
The chancellor announced he would be cutting corporation tax by 2% this year and by 1% for the next three years, whilst £350 million worth of regulation on businesses is to be removed, Mr Osborne, said ‘Today’s budget is about reforming the nation’s economy, so that we have enduring growth and jobs in the future.” The reduction in corporation tax will be offset by an increase in bank levy.
Speaking at an event held at Manchester Business School pro.manchester Chief Executive John Ashcroft said: “ The Chancellor did well but with very limited room for manouevre. Growth has been revised down yet again and inflation remains a massive problem for 2011"
Chris Bones of Manchester Business School commented: “This appeared to be a complete coalition budget with left and right policy but the real surprises were the proposals in the background.”
The rate of income tax will also be raised in 2012 by £600 to £8,105 a move which will see an extra £320 in the pocket of over twenty million basic rate tax payers.
A helping hand was given for first time buyers with a 250million fund which will give an interest free loan of up to 80% of the deposit of a new home, relief was also given to drivers with a 1p reduction in fuel duty and a planned increase of 5p in April being scrapped.
Drinkers, smokers and bankers were all made to suffer however with about 13p put on a bottle of wine, 51p on spirits, a 5p a pint of super-strength beer and 17p put on a packet of cigarettes.
for more reaction on the budget check out the video below:
10 Key Points: How the Budget will affect your business 1. Reduction in corporation tax by 2% in 2011 and by 1% for the next three years. 2. 21 new enterprise zones to be created and £100 million extra to be invested in new Science centres 3. New green investment bank to have access to £3 million of funds 4. £350 million worth of regulation taxes to be removed 5. Relief for entrepreneur tax doubled to £10 million 6. Business mileage allowance increased from 40 to 45p 7. Gift aid administration to be simplified especially for small donations 8. The UK to become the first country in the world to introduce a carbon price floor for the power sector. 9. No new regulation on firms with fewer than 10 staff for three years 10. New rules to require planners to prioritise growth and jobs
