Chancellor George Osborne today gave his annual Autumn Statement, setting out the country’s economic outlook and announcing new policies to be implemented. There was some good news for small businesses, with announcements regarding tax and funding.
The main change for businesses is the cut in corporation tax, which was reduced a further 1% below expectations to 21%. This will be implemented in 2014, and is hoped to encourage small businesses to grow without the fear of large tax bills.
The Small Business Rate relief scheme will be extended by another 12 months to 2014. This has already enabled 35,000 small businesses to avoid business rates. The new Business Bank, which we wrote about yesterday, will have £1bn of extra capital. The Chancellor said this will “lever in private lending to help small and medium sized firms and bring together existing schemes”.
The Chancellor also announced a boost to the Regional Growth Fund, a freeze in fuel duty, and tax relief for employee shareholder schemes.