Budget 'better than expected' for businesses

The Budget was better than expected for investors and business owners, according to Martin Bamford, chartered financial planner and managing director at Informed Choice.

Reacting to this afternoon's (June 22nd) Budget announcement, Mr Bamford noted that the industry had feared bigger increases to taxes such as capital gains.

He said: "Many of the measures keep things quite simple and the focus on spending cuts rather than tax rises is a fair way of dealing with a budget deficit made unaffordable by years of excessive growth in the public sector.

"Some of the measures to help small businesses, including limiting employer National Insurance (NI) increases and reducing corporation tax, will make the UK private sector more attractive and hopefully boost the economy."

This could reassure some business owners who had feared what might come out of the Budget.

Start-up businesses with a new share certificate will be given an NI holiday in certain areas of the UK over the next three years.

Some measures will affect businesses and consumers, however, such as an increase to VAT of 20 per cent.

Posted by Morag Lyall

Published on: June 22, 2010

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