Welcome to the 2009 Pre-Budget Newsletter from Connolly Accountants Ltd

Chancellor Alistair Darling has presented his 2009 Pre-Budget Report, to a politically charged House of Commons. While predictions of an increase in VAT and a rise in capital gains tax were not forthcoming, nevertheless the Chancellor announced some key measures with the stated aim of securing economic recovery and promoting growth.

Despite revising down his economic growth forecasts, and increasing his borrowing forecasts, the Chancellor insisted that confidence will rebound, and predicted that the UK economy will grow by 1-1.5% in 2010.

Of particular interest to business owners was the news that the planned 1% increase in corporation tax will be deferred for small firms, leaving the rate unchanged for 2010. Various business schemes, including Empty Property Relief and the loan guarantee scheme are also being extended.

Meanwhile, the Chancellor confirmed that national insurance contributions will rise by a further 0.5% from April 2011, although the starting point will also be raised so that those earning less than £20,000 a year will not be affected.

The Chancellor also made a much-anticipated announcement on bankers' bonuses, with the introduction of a new one-off 50% 'super tax' on bonuses in excess of £25,000, payable by the banks.

For a detailed overview of the Pre-Budget Report and what it means for you and your business, visit our Report summary here.

WHAT THEY SAID

'The choice facing the country is between securing recovery or wrecking it.'
Chancellor Alistair Darling

'We were promised a Pre-Budget Report and what we got was a pre-election report.'
Shadow Chancellor George Osborne

'It's clear that the NIC rises mean a brake on employment growth. While everyone understands the importance of restoring the public finances to a sustainable path, a tax on jobs is not the way to do it'.
David Frost, Director General of the British Chambers of Commerce

'This is a good Budget for bingo and boilers.'
Vince Cable, Liberal Democrat treasury spokesman


FOR THE FULL PRE-BUDGET ANNOUNCEMENTS VISIT:

http://www.hm-treasury.gov.uk/prebud_pbr09_index.htm


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Pre-Budget Report: the business reaction
While welcoming a deferral of the 1% rise in corporation tax, business groups have criticised other measures outlined by the Chancellor.
Click here for the full story

Pre-Budget Report: the political reaction
Opposition members have criticised the Chancellor's proposals for tackling UK debt.
Click here for the full story

Pre-Budget Report: Chancellor announces measures to 'secure recovery'
The Chancellor has outlined a number of measures aimed at securing economic recovery and promoting growth.
Click here for the full story