News and Events

Osborne delivers positive Budget

22/03/2012

With all eyes on George Osborne yesterday as he delivered his third Budget as Chancellor, the general consensus is that his plans will assist UK businesses in the months ahead.

Widespread reforms to the tax system were central to the Government's measures, with Corporation Tax cut by a higher-than-expected 2%. The Chancellor also declared the rate would be reduced to 22% in 2014 and hinted it would fall to 20% in the not-too-distant future.

Meanwhile, he confirmed the Government's commitment to reducing the administrative burden on SMEs by progressing plans to merge National Insurance with Income Tax, with a consultation report due to be published next month.

The top rate of Income Tax for those earning over £150,000 each year will be reduced to 45p from the start of the 2013/4 tax year, while the personal allowance – which will rise to £8,105 from next month – will reach £9,205 next year, a move which is hoped will increase consumer confidence.

And with many businesses complaining of a lack of access to credit, Tuesday's launch of the National Loan Guarantee Scheme, combined with the extension to both the Business Finance Partnership and the Enterprise Finance Guarantee, is hoped to address this issue.

News that the Office for Budget Responsibility has upwardly revised its growth projections for 2012 to 0.8% provides further encouragement for businesses, with GDP growth of 2% expected next year and 2.7% in 2014.