Autumn Statement 2012: Simple budget offers some relief for business
• Billion pound bank will end confusion
Wednesday 5th December 2012
Commenting on the Chancellor’s Autumn Statement today, David Bywater, Tax Partner said :
“Businesses, particularly in the SME sector will welcome the Chancellor’s attempts to keep it simple with very little tinkering to the tax environment and yet several measures to encourage investment in the UK.
“Reducing the corporate tax rate to 21% from April 2014, maintaining business rates relief and a 10 fold increase in the annual investment allowance, should encourage capital investment particularly for small and medium sized businesses, and offer some breathing space as the economy continues to struggle.
“Signalling the desire to adopt many of the measures recommended by the Heseltine Review, such as better direction of cash through the local enterprise partnerships to deliver on local needs will be welcomed by the businesses up and down the country.
“Additional measures announced to help businesses with exporting – particularly to the fast growing emerging economies via UKTI will be really welcomed, as the UK falls behind our European counterparts, particularly at the SME level with our exports.
“Keeping it simple was an idea that ran through the whole of the statement today, but particularly around the announcement of the new Business Bank which will be provided with £1 billion of extra capital along with simplifying things through the consolidation under one roof of the numerous existing schemes that provide capital to small and medium sized firms.
“Finally, announcements on extra spending on infrastructure projects will be particularly welcome to businesses across the country. Measures to boost the construction sector will no doubt help to stimulate growth all the way down the supply chain to the SME community.”
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