2012 budget aims to boost UK business

Lewis Tyler

By Lewis Tyler

March 22nd 2012 at 11:40AM
2012 budget aims to boost UK business

Firms of all sizes stand to benefit as the Government introduces a new loan scheme and cuts corporation tax.

George Osbourne has increased the amount of finance available to small and medium sized businesses via the National Loan Guarantee Scheme.

The new scheme earmarks £20 billion for small to medium enterprises, with interest rates on loans to be one per cent lower than what is normally available.

Despite the introduction of the loans scheme, the small business community has critcised the Government for failing to scrap the planned 5.6 per cent rise in business rates.

Corporation tax will be reduced to 24 per cent while more cuts in 2013 and 2014 will see the tax further reduced to 22 per cent.

For small firms a turnover less than £77,000, a simplified tax return system will be introduced.

The Government has also decided to introduce tax breaks for companies working in digital content industries like  video games, animation and film.

Mind Candy’s CTO Toby Moore told our sister site Develop: "We're thrilled to hear about the forthcoming tax breaks. The move will help smaller companies get off the ground and enable bigger studios to compete for top talent.

"Tax incentives will help keep local talent here in the UK when competing against other countries who've had a much more enticing offering to date."

Osbourne is also looking to revolutionise Britain’s broadband and wi-fi networks, introducing funding for superfast internet in our top ten cities, while making a smaller purse available to do the same in smaller cities.