Supporting business and growth
The Government will provide targeted support for businesses as the economy recovers, and will lay a foundation for sustainable long-term growth, opportunity and enterprise.
Budget 2010 announces:
- support for business start-ups, and small growing businesses through a temporary increase in small business rate relief;
- the Time to Pay facility to allow businesses more time to pay their tax bills will be continued to be offered;
- doubling the Annual Investment Allowance to £100,000, allowing more capital expenditure to be offset against taxable profits;
- doubling the value of capital gains that can be made under Entrepreneur’s Relief, meaning gains under £2 million are subject to Capital Gains Tax at the lower rate of 10 per cent;
- launching UK Finance for Growth, responsible for streamlining £4billion of existing finance products for small and medium sized businesses, ensuring one coherent portfolio of government-backed funds supporting businesses across the country;
- agreement with Lloyds Banking Group and Royal Bank of Scotland to lend £105 billion to homebuyers and businesses over the next 12 months; and
- a new small business credit adjudicator with powers of enforcement to ensure that small businesses have access to the finance they need and are fairly treated when applying for loans.
Innovation and research can improve skills and create jobs in the industries of the future. The Budget announces:
- it will introduce a tax incentive for the development of culturally British video games, following consultation and approval from the European Commission; and
- a £270 million Modernisation Fund to allow universities to deliver efficiencies and fund 20,000 extra undergraduate places
The UK faces the challenge of developing its infrastructure during a period of reductions in public borrowing, and restrained public spending. The Budget announces:
- a new Green Investment Bank will support provision of equity capital for low-carbon infrastructure. It will bring together public and private sector capital and operate on a commercial basis; and
- £84 million for repair of local and regional roads damaged by recent cold weather, and £250 million investment to improve capacity in the road network.
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