What The 2011 Budget Means For Peterborough Businesses
Today 23rd of March 2011, the Chancellor of the Exchequer, George Osborne, presented the 2011 Budget.
The Budget extends on announcements in the Spending Review 2010 and the June Budget 2010.
A summary of the Budget 2011:
- The reduction in the main rate of corporation tax by a further one per cent. From April 2011, the rate will be reduced to 26 per cent with further yearly reductions of one per cent until 2014 when it will reach 23 per cent.
- New Controlled Foreign Company rules to allow groups based in the UK to compete more effectively with those based overseas.
- 43 tax reliefs will be abolished whose rationale is no longer valid – following recommendations from the Office of Tax Simplification.
- Existing proposals for specific regulations which are to be dropped which would have cost business over £350m a year.
- Pothole repairs! They were caused by the cold winter weather and £100m is to be given to local authorities to fix them.
- R&D tax credits to be increased for small and medium-sized enterprises from 175 per cent to 225 per cent by April 2012.
- To focus growth in specific parts of the UK, 21 new Enterprise Zones are to be introduced.
- Fuel duty to be cut by one penny per litre from 6pm on March 23 2011. The April 2011 inflation-only increase in fuel duty will be deferred to 1 January 2012; the April 2012 increase will be implemented on 1 August 2012.
- Income tax personal allowance to be increased for under 65s of £630 to £8,105 in April 2012.
- More work experience placements and additional apprenticeships for young people.
- Homeowners facing difficulties will be helped by extending the temporary changes to the Support for Mortgage Interest Scheme for another year and providing £250m to support first time buyers to purchase a new-build property.