I was with a client all day yesterday, and I only actually heard about a minute of the Chancellor's budget speech. This was the bit I heard:
A competitive and simplified tax regime is essential.
That is why we cut the main rate of corporation tax in 1997 and again in 1999.
And from next month the main corporation tax rate falls again from 30 per cent to 28 per cent.
Mr Deputy Speaker, the UK is one of the best places in the world to do business. We are committed to consultation with business to maintain a stable business tax system that remains responsive to business’ needs and internationally competitive.
Underlining our commitment to maximising the economic recovery of the UK's oil and gas reserves, I can also confirm reforms to the North Sea fiscal regime to help incentivise investment and support production.
But today I also want to do more to support Small and Medium Enterprises now and in the longer term.
13 million people work in Small and Medium Enterprises. And there are over 750,000 more firms than in 1997.
The new Capital Gains Tax rate will come in next month including the entrepreneurs’ relief I announced in January.
And that will benefit over 80,000 businesses and investors in the next year alone – 90 per cent will continue to pay Capital Gains Tax at 10 per cent – one of the lowest rates in the world.
This Budget continues a programme of tax simplification. I am today announcing further steps to help small companies simplify their tax calculations.
Mr Deputy Speaker, especially at this time we need to do more to help Small and Medium Enterprises get access to the finance they need.
To help them in current conditions, I can therefore announce that funds available through the Small Firms Loan Guarantee scheme will be increased by £60 million for the coming year.
And I am from next month extending the scheme to small and medium firms.
Can you spot what's missing here? The Chancellor tells us about the reduction in corporation tax for large companies to 28%, as already announced in the Pre-Budget Report, and he tells us how important SMEs are. But there's no mention at all of the increase in corporation tax for small companies to 21% from 1 April. The claim that the Chancellor wants to supports SMEs is undermined somewhat by that tax increase - it dwarfs any extra funds made available under the Small Firms Loan Guarantee Scheme. As ever, the good news gets repeated, the bad news gets buried or twisted.
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