MEASURES for the private sector in yesterday’s Budget were largely welcomed by business – although there were continued worries over the impact of hikes in National Insurance contributions.
The Federation of Small Businesses (FSB) in Wales said it was concerned over the increases in National Insurance, although it gave tacit approval to the decision to phase in increases in fuel duty.
Cardiff-based logistics and haulage company Global Specialised Services agreed, with managing director Mike Mitchell, saying the rise will be particularly hard on small businesses.
He said: “This makes it difficult for us to pass the increase on to end-users and certainly doesn’t help us to grow as a business.”
There was a boost for smaller companies wanting to bid for public sector contracts, while small firms will also have more time to pay their tax bill under Budget proposals.
Janet Jones, Wales chair of the FSB, said: “This Budget has provided welcome news on helping to improve small businesses cash-flow but the increase in the National Insurance Contributions (NICs) will be bad for job creation.
“Small firms are key to furthering economic recovery as the UK’s largest employer and we are concerned that through continuing plans to increase employee NICs and not introducing an NICs holiday to firms employing less than 50 staff who take on more employees, it will increase pressure on struggling firms, meaning they will not be able to take on additional staff.
“FSB research shows that the 1% increase would cost 57,000 jobs in the UK. It is a tax on jo
28 Mar
Posted by Brian Anderson as Finance Help
Roy Birtles, tax director at ktsowensthomas
ONE of the biggest headlines of the 2010 budget was the two- year stamp duty holiday for first-time buyers.
This relief means that between March 25, 2010 and March 25, 2012 first-time buyers can purchase a property up to £250,000 without incurring a Stamp Duty Land Tax (SDLT) charge. Previously the SDLT threshold was £125,000 so the Chancellor has effectively doubled the threshold – but only for first-time buyers.
This may kick start the housing industry and is certainly more generous than the previous stamp duty holiday in 2009, where the threshold was temporarily extended to only £175,000.
This policy may have been a deliberate attempt to cut the Tories down before the election as their election manifesto promises to take first-time buyers out of stamp duty. Cert
IN probably his last Budget, regardless of the outcome of the general election, Chancellor Alistair Darling said borrowing would be £11bn below forecast this year, thanks to stronger tax revenues and lower unemployment than first feared.
He said the recovery was still in its “infancy” and that now was not the time to threaten growth by a major reduction in public expenditure, while warning that tough decisions lay ahead in 2011. His
A LEADING business group yesterday welcomed many of the key points in Chancellor Alistair Darling’s final Budget before the general election.
The South Wales Chamber of Commerce said Mr Darling had “recognised the need to place business at the heart of the Budget”.
Graham Morgan, director of the chamber, said: “We welcome the key points made about doubling the annual investment allowance, help with business rates (an issue that we signposted in October 2010 through the BBC in a panel discussion), and allowing entrepreneurs to keep more of their gains.
“However, we would have liked to have seen the Chancellor setting out a clearer plan for the reduction of the budget deficit, which continues to threaten business confidence and investment.
“We would have also liked to have seen a freeze placed on petrol prices rather than a phased 3p fuel duty rise between April and January 2011. With petrol
RBS and Lloyds to provide £94bn of new business loans – nearly half to SMEs.
Our verdict: More credit in the system for the private sector is a good thing and hopefully this money will filter down to the businesses that are still in need of finance. This should have been the case far earlier, given the fact these banks have been part-nationalised after needing the Government’s support to keep them in business.
Growth capital fund to provide fast-growing companies with private capital; commercial banks to provide more than half of the £200m for this.
Our verdict: With an eventual promise of £500m in the pot, the commitment to provide finance to the nation’s job creators is an admirable one. The fund is a result of the Government- commissioned Rowlands Review, chaired by Welshman Chris Rowlands. Could be