Brief budget breakdown

A news story on the #smallbiz website earlier today suggested that small firms were not particulary interested in the budget and weren't factoring it into their plans Study reveals Budget 2010 is a minor issue for small firms.

But now that the Chancellor has finished unveiling his plans there does seem to be some significant content there for both small and medium-sized enterprises. Here's a brief summary:

  • Business rates to be cut for a year from October, meaning a tax reduction for 500,000 small firms.

  • Annual investment allowance will be double to help get new companies off the ground

  • Increased relief on capital gains tax for entrepreneurs

  • Creation of a new investment corporation, called UK Finance for Growth, to oversee the government’s £4bn range of support for businesses.

  • Increase by 15% the number of government contracts that go to small and medium-sized firms.

  • State-subsidised banks RBOS and Lloyds will lend around £94bn over the next year; at least half to SMEs.

  • A ‘green’ investment bank, controlling £2bn equity, which will focus on investing in greener, cleaner energy and transport, focusing first on wind turbines.

  • A £35m university enterprise capital fund to support innovation and help start-up companies set up by new graduates. Plus 270m for universities to create 20,000 more places in subjects like maths, science or engineering.     

This has to be positive news for start-ups and entrepreneurs. More tomorrow, but you can join the budget debate on the Marketing Donut site (amongst others) here.  


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