In Today’s Budget Review, Chancellor George Osborne revealed various initiatives outlined in the Plan for Growth, which will help to build on the macroeconomic stability created by the Government’s deficit reduction plan announced last year.
The new plan aims to brings in around 100 new measures to ease the burden of regulation and creates a pro-growth planning system, as well as providing support to private sector investment and providing people across the UK with the skills and opportunities to work.
In a bid to improve the UK’s tax competitiveness, it was announced that a further 1 per cent cut in corporation tax can be expected from April 2011 to 26 per cent, falling to 23 per cent by 2014.
Plans are set to increase the rate of SME R&D tax relief to 200 per cent in 2011 and 225 per cent in 2012 as well as increasing the rate of Enterprise Investment Scheme tax relief to 30 per cent from April 2011.
Chancellor’s ‘Budget for Jobs’ welcomed by business, but must go further says REC
The Recruitment and Employment Confederation (REC) has today welcomed the pro-employment provisions in Chancellor George Osborne’s budget, but cautioned that more must be done to boost job creation. In his initial reactions to the Budget statement, REC Chief Executive Kevin Green said:
“We are delighted that the Chancellor has listened to recruiters and the wider business community and taken faster action on dropping corporation tax, which will be welcomed by firms across the country.
“However, we urge the Chancellor to consider further fiscal incentives to help employers take on young people, such as a National Insurance holiday of at least one year for SMEs who take on additional young people.”