Member Article

Osborne delivers business friendly budget

In what George Osborne billed as his “budget for growth” the Chancellor yesterday cancelled next month’s planned 4p rise in fuel duty.

A further 1p will be cut from pump prices immediately - all paid for by a £2bn tax on oil companies.

John Walker, national chairman, Federation of Small Businesses, who have been very vocal about the importance of introducing a fuel stabiliser, said: “We are pleased that the Chancellor has introduced a fuel duty stabiliser, has committed to cutting fuel duty and has introduced 21 new Enterprise Zones.

“This will provide much needed stability for struggling small businesses.”

Mr Osborne set out a series of measures to boost enterprise - including a further cut to corporation tax, which will go down by 2% rather than 1% in April.

John Cridland, CBI Director-General, said: “This Budget will help businesses grow and create jobs. The Chancellor has made clear the UK is open for business.

“The extra 1p cut in corporation tax will help firms increase investment. Meanwhile, significant changes to entrepreneurs’ taxation will rightly focus much-needed support on businesses with growth potential.”

The Chancellor also more than doubled the number of planned Enterprise Zones - from 10 to 21 – with the confirmation of an enterprise zone for the Tees Valley

Middlesbrough Mayor Ray Mallon said: “This is a significant success for the Tees Valley Local Enterprise Partnership as securing an enterprise zone will provide a major boost to new businesses.”

“We will now decide where the best location is within the Tees Valley to bring maximum benefit to the people of this area.”

A £250m package has also been designed to help 10,000 first-time buyers to purchase a new-build flat or house.

The scheme will offer interest-free loans to Brits with incomes lower than £60,000 who are struggling to raise a deposit on their first home.

Miller Homes North East sales director Steve McElroy said; “The Chancellor’s proposals are fantastic news for first time buyers – and for the rest of us too.

“This financial investment will not only give the property market the entry level buyers it desperately needs, it will also create jobs, reduce the burden on the state when it comes to income support and boost taxes raised by both income tax and stamp duty.

“With the level of debt standing as it is, this is crucial for the country’s coffers.”

Mr Osborne also revealed that he now expected Britain’s economy to grow at a slower rate than previously expected this year with the Office for Budgetary Responsibility cutting its growth forecast for 2011 from 2.1% to 1.7%.

Labour leader Ed Miliband mocked Mr Osborne’s claim to have delivered a Budget for growth, saying the government’s cuts were damaging the economic recovery.

He said: “One fact says it all and he couldn’t bring himself to say it: Growth down last year, this year and next year.

“It’s the same old Tories - it’s hurting but it isn’t working.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .