Welcome to the 2010 Budget Newsletter from Connolly Accountants Ltd

In his final Budget before a much-anticipated General Election, and with the UK emerging from the 'deepest global recession for over 60 years', Chancellor Alistair Darling faced something of a delicate balancing act as he outlined a series of measures aimed at tackling the deficit while supporting economic recovery.

Reiterating his plan to halve the deficit within four years, the Chancellor revised his borrowing forecast for 2009/10 downwards from £178bn to £167bn, but also downgraded the economic growth forecast for 2011 to 3-3.5%.

Among the key measures announced was support for first time buyers, in the form of a two year stamp duty land tax relief on residential properties costing less than £250,000. This will be offset by a new 5% rate for properties worth over £1 million. Meanwhile, the inheritance tax threshold has been frozen for a further four years.

A £2.5 billion small business package aimed at boosting skills and innovation was also unveiled, with a temporary increase in small business rate relief due to take effect from October, in addition to a doubling of the Annual Investment Allowance and the Entrepreneurs' Relief lifetime limit.

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


WHAT THEY SAID

"This will be a Budget to secure the recovery, tackle borrowing and invest in our industrial future"
Chancellor Alistair Darling

"The only new ideas in British politics are coming on this side of the House and the only things that Labour are bringing are debt, waste and taxes"
David Cameron, Conservative Leader

"This Government still came in £167 billion over budget. That's not something to boast about"
Nick Clegg, Liberal Democrat Leader

"This Budget has provided welcome news on helping to improve small businesses' cash flow but the increase in NICs will be bad for job creation"
John Walker, Federation of Small Businesses

"While it's clear that the Government has been listening to our messages about small businesses in the recovery, there's a sense that this was a budget for an election"
Phil Orford, Forum of Private Business

"We remain convinced that swift action to tackle the budget deficit is needed"
Miles Templeman, Institute of Directors


FOR THE FULL PRE-BUDGET ANNOUNCEMENTS VISIT:

http://www.hm-treasury.gov.uk/d/budget2010_complete.pdf


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