Mixed reaction from businesses to the budget
Jon Vale • Published 22 Mar 2013 07:30 0 Comments
BUSINESS leaders are divided on the value of Wednesday's budget.
The main rate of corporation tax will fall to 20% from April 2015 from its current rate of 24%, while from April 2014 businesses and charities can access a £2,000-per-year employment allowance towards their employer national insurance contribution (NCI).
Employers with fewer than 10 members of staff will see their employer NICs cut by £805, said the Treasury.
However, there were no measures to specifically help small businesses, such as an increase in VAT thresholds or rate reliefs.
Mike Kempster, manager at TaxAssist Accountancy in Bath Road, Slough, said: "It's not exactly a budget for small businesses. An increase to the VAT threshold or an extension of small business rates relief would have gone much further.
"Fortunately Slough Borough Council are very good with rates, but nationally we need to do more."
David Cook, director of Thames Valley Berkshire Local Enterprise Partnership (LEP), described it as a "business-friendly budget".
He added: "Corporation tax being cut is fantastic, as is the employment allowance.
"We have around 45,000 small or medium-sized enterprises in Berkshire, so to give them an incentive to take people on will go a long way to boosting the economy."
The chancellor announced plans to introduce a single competitive funding pot for local enterprise, as recommended in a report into local economies by Lord Heseltine.
The core of Lord Heseltine's report is a decentralised approach that empowers LEPs to drive growth.
Mr Cook said that while he welcomed Mr Osborne's strategy, LEPs were still waiting to see where that devolving of spending would happen.
This article appeared in Bracknell News 23 Mar 13