Budget 2013 – a business friendly budget
The Chancellor is continuing with his approach and emphasising Britain is the place for business by cutting the corporation tax rate, and reiterating a commitment to ‘building the most competitive business tax system in the world’. Budget 2013 is an attempt to help build confidence and support what the Chancellor described as the entrepreneurial spirit of the country.
The new employment allowances are likely to have the biggest impact on the ground. A refund on the first £2,000 of employers’ National Insurance payments is of real benefit to small enterprises. Raising the zero tax threshold of the personal allowance to £10,000, the extension of tax relief on employer loans for season tickets, fuel duty freezes and moves to support child care could potentially work well together, increasing labour mobility and widening the talent pool for businesses. Equity loans of 20% to help people buy houses and the £130bn of guarantees promised for deposits for those wishing to buy could also help, though the risks of personal over-leverage should not be discounted should interest rates rise.