Feeds

Budget Day: First dump from Osborne

Says will support R&D in small firms

Reducing the cost and complexity of web vulnerability management

Budget '11 Chancellor of the Exchequer George Osborne told the House of Commons that today's Budget was about reforming the UK economy and helping families deal with rising living costs.

He said it marked a move from rescue to recovery. He claimed the changes had already brought stability to the British economy.

Osborne said the credibility of his cuts programme was shown when UK interest rates are compared with those of other nations.

The Chancellor said the growth forecast for 2011 was down to 1.7 per cent thanks to a weak last quarter of 2010, as well as higher inflation and commodity prices. Osborne said he hopes to see inflation of between 4 and 5 per cent.

Sandwiched between Clegg and Cameron, the Chancellor said he was keeping an inflation target of 2 per cent based on the Consumer Price Index (CPI).

He said Britain's tax code needed reforming to make it simpler, shorter and easier. The Budget will abolish some 43 tax reliefs, a start to this simplification.

From April 2012, the CPI will be used to update tax codes.

Osborne said national insurance and income tax were an expensive burden on employers, and employees. The Treasury will therefore consult on bringing the two together. He expects the process to take several years.

On company tax, Osborne promised to reform complex rules for controlled foreign companies.

Corporation tax will go down in April by 2 per cent and will continue to go down by 1 per cent a year for three years – making it the lowest in G7, Osborne claimed.

But Osborne said he would adjust the bank levy rate in order to ensure that the bankers don't receive the benefit of that cut.

Lord Young's ideas for health and safety will be introduced.

All businesses with less than 10 employees will have the benefit of a three-year moratorium on new domestic employment laws.

Osborne will also act on planning, and increasing expenses for local authorities.

He said small businesses were innocent victims of the credit crunch, and has negotiated with banks for a 15 per cent increase in capital.

Income tax relief goes from 20 per cent to 30 per cent.

Entrepreneur relief is doubled to £10m. The 50p tax rate remains, although the Chancellor said it remained a temporary measure.

Non-doms will be expected to pay a £50,000 charge if they have been in the UK more than 12 years. But the charge will be removed if money is brought into the UK for investment.

The rate relief holiday for small businesses is extended until October 2012.

Osborne promised to consult on reforming intellectual property laws.

He said he'd listened to James Dyson and planned to support research and development in smaller firms.

From April, small firms' R&D budget will go up 200 per cent this year and next.

Osborne will also double the capital limit on assets.

He will fund 21 enterprise zones, which will be announced in the summer – and London mayor Boris Johnson gets to choose one for the capital.

You will soon be able to read the full speech here. ®

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
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?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.