Chancellor unveils summer budget that will benefit businesses
Reduced level of corporation tax just one of the measures that provide good news for businesses.
The Chancellor of the Exchequer has today delivered his summer budget, describing it as “a budget for working people.”
In the first all-Conservative budget since 1996, George Osborne has set out a number of measures that will be music to the ears of businesses within the construction industry.
There has been a taste of this through the plans set out in the Enterprise Bill which sought to help businesses avoid red tape that was costing them unnecessarily.
Today’s budget has also been delivered with businesses in mind. One of the measures set out by the Chancellor will see further cuts to corporation tax.
This is nothing new, with an 8% cut made in 2010 to bring it to its current level of 20%.
However, in 2017, this will decrease again to 19% and by 2020, corporation tax will be at 18%.
This move is expected to benefit more than one million businesses.
Business will also be able to make use of the highest level of annual investment allowance which will be permanently set at £200,000 from next January.
It will mean that businesses can plan spending in the long term and they will also be able to purchase machinery and equipment and deduct the full value of some items, up to £200,000 from profits before tax.
This is crucial because tax relief will be given in the year that items are purchased, resulting in better cash flow.
The theme of setting the budget to help those in business continued with the news that an extra £1,000 will be cut from a business’ employer national insurance bill from next April.
When this comes into effect, the Employment Allowance will rise to £3,000 from its current level of £2,000.
It will result in not only helping businesses to expand, but increasing employment opportunities, as next year, they will be able to hire four more people in a full-time capacity on the National Living Wage without having to pay any national insurance.
George Osborne also reiterated the Government’s commitment to creating more apprenticeships, which will be funded by a levy on large employers.
By 2020, the Chancellor says an extra three million new apprenticeships will be created, with those firms committed to training able to get back even more than they put in.
The budget was met with approval from Stephen Crabb, the Secretary of State for Wales, who believes the measures will “boost business.”
He said: “Today’s budget is all about securing a sustainable and affordable long-term recovery for people in Wales.
“Because of the tough decisions taken in the last Parliament to get the national finances back under control, we can achieve a smoother path for the next five years. This means we can continue to provide help for those who need it whilst at the same time supporting people back into employment by making sure work pays.
“The measures outlined by the Chancellor today will boost business in Wales and reward working people whilst making sure that those with the broadest shoulders bear the largest burden.”
Elsewhere, the Government have promised more control for northern cities over local transport, vowing to support Transport for the North (TfN) with £30M in funding in the next three years.
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