By Ben Simmons
Chancellor Osborne has delivered the 2012 Budget again promising more support and fewer restrictions on businesses large and small.
In summary, the Budget was fiscally neutral in that tax perks and cuts have matched with rises in duty and overall no new austerity measures have been imposed. This, observes the chief economist of forex brokers, Caxton FX, is crucial to continue the vital task of retaining the UK’s favourable credit rating:
“As expected the Chancellor reiterated the UK government’s “unwavering commitment” to reducing the country’s public debt and he’s quite right, the UK’s triple-A rating and low borrowing costs are absolutely essential.”
Chief policy announcements include a 2% cut, to 24%, in corporation tax, bringing the UK’s rate to among the lowest in the G20. Small businesses are also set to gain as Coalition continue its purging of onerous red tape.
Osborne also touched upon a £10m pilot loans scheme for young entrepreneurs. Envisaged as an alternative to tuition fee loans for students, the scheme would provide low cost loans to aspiring entrepreneurs.
“This has the potential to transform the prospects of thousands of young people,” says Sir Richard Branson, founder of the Virgin Group who first proposed the scheme. “The entrepreneurs of today will be the job creators of tomorrow so I’m delighted that the Government has listened to those at the very start of their careers. The country is full of gifted and enterprising people so this pilot, which crucially has business mentoring and support at its heart, will help prevent a lost generation of talent.”
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