Budget 2011: Tax reliefs unveiled as Osborne bangs drum for 'Designed in Britain'
Chancellor George Osborne today unveiled an ‘urgent call to action’ budget aimed at ‘encouraging enterprise’ in the UK
Addressing the House of Commons Osborne set out his ‘vision for growth’ which included plans to reform the planning system and create 21 local enterprise zones.
Reforms to rules governing small businesses were also unveiled as part of a bid to stimulate private sector activity.
Under the plans start-up businesses and companies employing fewer that 10 workers will be exempt from any new domestic regulation for the next three years.
Companies employing fewer than 250 employees could also benefit from a decision not to extend the ‘right to request time to train’. The could save businesses £350 million a year, it was claimed.
The capital allowances ‘short life asset regime’ for plant and machinery will also be extended from four to eight years to encourage investment in equipment.
And 50,000 more apprenticeships and 80,000 work placements will be created along with 24 new ‘University Technical Colleges’ for 11-19 year olds.
Concluding his speech Osborne said: ‘We want the words: “Made in Britain”, “Created in Britain”, “Designed in Britain”, “Invented in Britain” to drive our nation forward.
‘A Britain carried aloft by the march of the makers, that is how we will create jobs and support families.’
Further details included:
- Abolition of 43 complex tax reliefs, removal of 100 pages from the tax code ‘at a stroke’
- Corporation tax to be reduced by 2 per cent from April
- Consultation to be launched on merging National Insurance and Income Tax
- New reforms to improve the intellectual property regime in digital and creative industries; and reform the money laundering regime
- New shared equity scheme for first-time buyers to help 10,000 families get onto the housing ladder, funded from £250 million paid for by the ‘Bank Levy’
- Support for ‘Mortgage Interest’ scheme extended by one year to January 2013, reducing mortgage arrears for 100,000 jobless homeowners
- Creation of a new 5.75 per cent rate on overseas financing income to attract international investment
- Income tax relief on the ‘Enterprise Investment Scheme’ to increase from 20 per cent to 30 per cent in April
- Reviews launched on the revenue raised by the 50p tax rate and on the taxation of very high value property
- Default indexation assumption for direct taxes to move to the consumer price index from April 2012
Read the full budget document