Wednesday, 23 June 2010

UK Budget

I would like to join with the CBI and the British Chamber of Commerce, who have broadly supported the Chancellors budget plans. Both are pleased by the Chancellors plans to cut the deficit and restore investor confidence. I feel it is important that the private sector is at the heart of the British economy.

Maintaining Britain’s privileged position as an investment destination of choice is something I have commented on before in this blog. Changes to corporation tax should help with this. Reduction of the small businesses rate to 20% and a 4 year plan to reduce the headline rate to 24% are also welcome and should help maintain Britain’s competitiveness.

The significant increase in entrepreneur’s relief and maintaining thresholds should be effective in insulating small business and investors from the increase in Capital gains tax. The proposed new 28% rate of tax should allow the UK to remain internationally competitive.

The budget appears to be well positioned to promote British business and maintain the levels of investment. The Government's plans to consult with business on issues relating to the R&D tax credit are also welcome.

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