In light of the recent budget announcements, I thought I would highlight some of the measures the government is taking to help businesses, as I believe that supporting local enterprise in a rural economy is particularly important.
The government has taken measures to kick start bank lending by increasing lending through the Funding for Lending scheme. I believe this will provide welcome support to businesses that want to expand and for those who wish to get on the housing ladder.
From 2014, the jobs tax of every business and charity will be cut by £2,000. This means that 450,000 small businesses, a third of all employers, will pay not jobs tax at all. Corporation tax will be cut even further, to 20% in April 2015.
Stamp duty is also to be abolished on shares in growth market companies and the rate of Above The Line(ABL) credit has been increased. ABL credit is a new mechanism for giving research and development relief to large companies and this will help to ensure the competitiveness of the UK and secure innovative investment.
The government also announced a limited extension of the capital gains tax holiday to encourage investors to take up the Seed Enterprise Investment Scheme. The Regional Growth Fund has received an additional £350m cash boost, which will help to support even more projects and programmes which lever private sector investment to create economic growth and sustainable employment.
To promote investment, particularly by small to medium enterprises, the government have increased the Annual Investment Allowance from £25,000 to £250,000 for qualifying investment in plant and machinery for two years from the start of this year. In addition, the temporary doubling of the Small Business rate relief scheme has been extended to April next year.
I do hope that this information is of interest and that it demonstrates the comprehensive approach the government is taking to help businesses start, grow and flourish.