A Budget for business?
Article Date: Apr 22 2009Here is a summary of Chancellor Alistair Darling's key announcements from today's Budget that may affect you and your business.
A new fund for innovation: An ‘investment fund’ of £750 million is being set up to support emerging technologies in areas such as advanced manufacturing, digital industries and biotech.
More money for cleantech: There will be an extra £525 million to support the development of offshore wind farms, another £435 million for energy efficiency measures for homes, businesses and public buildings, and a further £405 million for advanced green manufacturing. The UK will commit to reducing emissions 34 per cent by 2020.
Top income tax rate: A year earlier than planned, the top rate of income tax for those earning more than £150,000 will be increased to 50 per cent (not to 45 per cent as announced in the Pre-Budget Report).
Loss relief: Loss-making companies will be able to reclaim taxes on profits made in the past three years. This relief will now be available until 2010.
Capital allowances: These will be doubled for 2009/2010.
Trade credit insurance: The government will step in to help if insurers reduce cover.
Scrappage: To support the car industry, a widely-anticipated scheme will give buyers trading in 10-year-old cars a handout of £2,000 from the Treasury.
Construction: An extra £500 million will help builders restart projects that have been stalled because of the credit crunch.
The economy: The Chancellor expects GDP to shrink 3.5 per cent this year, followed by growth of 1.25 per cent in 2010. Consumer price inflation is forecast to continue to fall sharply and reach one per cent by the end of the year, while the retail price index is expected to remain in negative territory, falling to minus three per cent by September this year before rising to zero in 2010.
Read the reactions of business owners and tax experts to the Budget.
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