The first Budget speech presented by new Chancellor Alistair Darling, was generally received pretty well by the small business community.
There were no real shocks to be had, after a bevy of blunders earlier in the year by the Chancellor over various tax reforms.
Some of the things that were particularly welcoming news for small businesses are the reduction in Corporation tax to 28%, a move in the right direction towards the CBI’s call for a fall to 18% within eight years.
Maintaining the rate of Capital Gains Tax at 10% for small businesses.
The Chancellor said that extra funding of £60million would be made for the Small Firms Loan Guarantee scheme, and £12.5million would be put aside to help women entrepreneurs get involved in business.
On the down side, the deferment of the 2p rise in fuel tax has angered many SMEs who have seen fuel rise by 20p a litre already, during the past year.
The Federation of Small Businesses was quick to react to the Chancellors increase in duty on beer, saying that;
“The extra 4p on a pint of beer won’t stop people binge drinking, but it might stop people going to the local pubs that support so many of our communities up and down the country.”
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1 Alcohol Posts » The Budget And Its Effect On SMEs // Mar 14, 2008 at 2:20 am
[…] John Williams wrote a fantastic post today on “The Budget And Its Effect On SMEs”Here’s ONLY a quick extract“The extra 4p on a pint of beer won’t stop people binge drinking, but it might stop people going to the local pubs that support so many of our communities up and down the country.” … […]