Business and enterprise in the Budget 2010

Business and enterprise in the Budget 2010

Small businesses are set to benefit from a package of measures worth £2.5 billion in the 2010 Budget, according to the Chancellor.  Key measures include creation of a £500 million Growth Capital Fund to invest in small, growing businesses, part-funded by the bailed out banks.  The Budget has revealed that 2 high street banks have agreed to lend £94 billion to businesses over the next 12 months, of which £41billion will be lent to SMEs. 

The Chancellor has also announced the formation of a new umbrella organisation, UK Finance for Growth, to oversee all of the Government’s financial support for small businesses. Access to finance for SMEs will be eased further by the introduction of a new credit adjudicator, giving small businesses the opportunity to appeal against a decision by the bank to reject a loan application.  In a package of tax breaks, the Chancellor announced that the ‘Entrepreneurs’ Relief’ threshold will be doubled, applying the lower 10% Capital Gains Tax rate to gains up to £2 million. 

In an unexpected move, Government has agreed to fund a temporary increase in the level of business rates relief.  This will effectively take 345,000 small businesses in England out of the business rates system, alleviating the third highest outlay for SMEs.  Although these measures have been broadly welcomed by key sector bodies, concerns remain that the impact of the proposed increase in National Insurance Contributions could overshadow the benefits of these measures.

Read more at http://www.startups.co.uk/6678842911028711938/the-round-up-budget-2010.html