Feeds

Budget Day: First dump from Osborne

Says will support R&D in small firms

The essential guide to IT transformation

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. ®

Next gen security for virtualised datacentres

More from The Register

next story
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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?