Budget 2014: Small Business Impact

Budget 2014: Small Business Impact

Chancellor George Osborne has today unveiled his latest annual Budget and small businesses in particular are concerned about what changes could be incoming and how they might help or hinder the fledgling economic recovery.

The Forum of Private Business has already issued their response to the Budget with Chief Executive Phil Orford speaking on behalf of their members to say that this was a budget offering “some help to all levels of business”.

Perhaps the greatest bonus to micro businesses that don’t earn very much money is that the income tax threshold has had a personal allowance increase to £10,500. The higher tax rate of 40% will also now start at £41,865 from £41,450 and this should mean more cash in the pockets of consumers.

Business rate discounts and enhanced capital allowances in enterprise zones have been extended for three years and the scheme will also be extended to Northern Ireland.

Tech startups have been given a Research & Development tax credit increase to 14.5% from 11%. Grants will be available for 100,000 more apprenticeships and the Chancellor also announced a £7bn package which will cut energy bills for manufacturers.

There was also a strong focus on exporting, with lending for exporters doubled to £3bn and interest rates on that lending cut by a third.

What are your opinions on the Budget? Let us know in the comments section.

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