20 March, as well as being the Spring Equinox, was budget day in the UK.
As in other European countries, the UK economy has been affected by the chill of the eurozone’s problem and the long winter of the international financial crisis.
Against this backdrop, our government has announced several new measures to stimulate recovery. More details on the HM Treasury website.
Taxation
- Reduction in the main rate of corporation tax (currently 24%) by an additional 1% to 20% by April 2015, the joint lowest rate in the G20.
- Simplifying the corporation tax system to a single rate.
- Boosting innovation by increasing R & D tax credits and reducing corporation tax rate on profits from patents to 10%
Infrastructure
- Plans to increase spending on infrastructure by £3bn a year by 2015.
- Implement Lord Heseltine’s recommendations including the creation of a single local growth fund, to attract international investment.
- £1.6bn to support investment in 11 key sectors through the new industrial strategies from the Department for Business.
- Investing £5.4bn in new housing schemes to encourage buyers and increase access to mortgages, and support the UK’s construction sector.
Energy
- To take forward two Carbon Capture Storage projects to the detailing planning and design stage. This represents the next step in the £1 billion CCS commercialisation programme.