In a Budget which he hoped would further combat economic contraction and stimulate growth, the Chancellor revealed a score of business tax cuts and relief, including a corporation tax reduction of 2%, (originally expected to be a 1% reduction as previously scheduled) that will eventually to cut to just 23%, down 5% from its current rate of 28%.
Further financial business support comes in the form of the abolishment of 43 tax reliefs to help simplify tax codes, new "enterprise zones" will be launched (areas where development receives special tax advantages), and £350m of business regulation will be abandoned, amongst other measures.
In a surprise move, Mr Osborne also announced that fuel duty would be cut by 1p per litre from 1800 GMT today and that the scheduled 4p per litre price rise would be delayed until 2012 – helping to reduce transport costs for business.
"This Budget sets for Britain these four economic ambitions. That Britain should: Have the most competitive tax system in the G20; Be the best place in Europe to start, finance and grow a business; Be a more balanced economy, by encouraging exports and investment; And have a more educated workforce that is the most flexible in Europe." Mr Osborne announced to MPs.
The Budget came on the back of reduced growth forecasts from OBR, who today downgraded the UK’s 2011 economic growth prediction from 2.1% to 1.7%. "This the OBR attributes specifically to the weaker than expected final quarter of last year, the rise in world commodity prices and the higher-than-expected inflation in the UK." Mr Osborne said.
To review a comprehensive guide for today’s Budget 2011, please click here: http://bbc.in/eIymBa
To read the Budget in full, please click here: http://bit.ly/fQl5ri
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