Feeds

Budget 2005: simpler VAT rules, technology boost

Brown's budget for business

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Update Gordon Brown presented his 2005 Budget to the House of Commons this afternoon and promised British business a lighter regulatory environment and simpler VAT regulations. The UK chancellor celebrated what he claimed is Britain's 50th consecutive quarter of growth and predicted another four quarters of growth of between 2.5 and 3 per cent.

He also promised an increase in spending on IT in primary and secondary schools to £1.67bn. Older pupils will get the chance to lease computers for use at home.

Brown said that with India and China now producing four million graduates a year it was more important than ever for the UK to encourage people to stay in education. Seventeen year olds will be entitled to as much as £70 a week if they stay in education or training.

Brown said: "We need to enhance the flexibility needed for a successful economy. So we will reduce the regulatory burden for British business. We will reduce 35 regulatory agencies to just nine. For companies meeting the highest standards there will be a major reduction in inspections they face."

The Exchequer will also encourage increased takeup of simplified VAT filing for smaller companies. But Brown warned of tougher penalties for rule breakers.

The fifty minute speech also promised free local bus travel for every pensioner along with a £200 council tax reduction. Brown also called for a new national network for stem cell research.

The threshold at which Stamp Duty kicks in on home purchases has been raised from £60,000 to £120,000.

Corporate tax, air passenger duty and company car taxation are all frozen.

From midnight there is a 1p increase on a pint of beer, 4p on a bottle of wine and 7p on cigarettes. Duty free allowances are to increase from £140 per person to £1,000. Fuel duty rises are deferred until September.

Update

The British Chambers of Commerce welcomed Brown’s changes to regulation. In a statement BCC said: "The moves announced in today’s Budget are a positive step forward, particularly on regulation. We are pleased to see that our main proposals on addressing the burden of regulation have been adopted by the Government. We are also looking forward to working with HM Customs and Excise to promote general awareness of the VAT system amongst small businesses.

“The British Chambers of Commerce looks forward to seeing the ambitious proposals to cut the cost of red tape become a reality. Employers have increasingly been swamped by additional regulation. Our latest figures have shown an extra £39bn of regulatory costs since 1998." John Higgins, director of Intellect, the IT trade body, said: "Today's Budget is halfway to getting it right for the knowledge economy. However, the Chancellor must do more if we are to become 'the world's leading location for research-based, science-based and knowledge-based industries'.

“UK hi-tech firms will appreciate the commitment to encourage investment in design, as this is an area where UK technology, telecoms and electronics firms have the most opportunity to add value and become more competitive,” Higgins said.

“Firms will also welcome the Chancellor's commitment to deliver greater consistency in the R&D Tax Credit. However we look to Government to ensure that software is included within this, as this is the area that has suffered most due to inconsistent treatment by tax inspectors." But Higgins warned the government: "You'll have to do more than that if you want to make any impact on the UK's competitiveness - to fail at this is not an option." ®

Related stories

'I'm a technophobe' - Blair's shock confession
Customs and tax merger to cost £75m
Brown promises £1bn for UK science
Budget sells IT industry short Intellect

Internet Security Threat Report 2014

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.