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Positives to Be Taken from the Budget: Lowered Taxes for Businesses

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Mixed in with some of the aforementioned concerns perceived with the latest budget set out Chancellor George Osborne, it is noteworthy that so too can positives be taken from the budget, especially for businesses and enterprises which have been struggling amidst shaky economic conditions.

Although the Office for Budget Responsibility has highlighted the present economic position and future prospects are markedly weaker, hopes are still held for economic growth and prosperity should the correct policies be put into place to support that growth. And while a struggling economy is by no means something the majority of people are to receive well, it Is also key to highlight that notably slower growth in China and across the developed world has also been reported, landing many other countries in a similar, if not even worse economic position.

Of such details highlighted in the budget, one of the most important aspects is to be the number of tax changes for businesses and enterprises, as well as the additional commitment of the government to infrastructure; effectively serving as part of the government’s pledge to put the UK’s economic stability first and foremost.

Looking to make the government “fit for the future”, planned investment is expected to support a greater degree of social mobility, as well as also assisting youths in saving up money for their future – a key aspect of consideration when considering the increasing difficulties for youths to enter onto what is considered the primary mode of investment into the future, the housing market.

Yet, for changes made to tax, well received is the cutting of corporation tax, presently sitting at 20%, which will fall by three points to 17% by April, 2020. Additionally, Small Business Rate Relief is also planned to rise by considerably from its present value, increasing up to £15,000 for the smallest of organisations, and then from anywhere between £18,000 and £51,000 for the higher rate. This, effect implying that some 600,000 SMEs will not feel the need to pay business rates from next year, and another 250,000 seeing a marked depreciation in these rates also.

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BDC 318 : Jul 2024