Welcome to the 2013 Budget Newsletter from Connolly Accountants Ltd

Delivering his fourth Budget statement to an animated House of Commons, Chancellor George Osborne pledged his support for 'aspiration' and vowed to face the UK's economic challenges 'head on'.

Confirming widespread concerns over the grim economic outlook, the Chancellor announced that the official growth forecast for 2013 had been slashed from 1.2% to 0.6%, but insisted that the Government was 'slowly but surely fixing our country's economic problems'.

The Chancellor unveiled some significant measures aimed at supporting businesses and individuals, including an additional future reduction in the main rate of corporation tax, and a much-anticipated increase in the income tax personal allowance, which will see the threshold reaching the Coalition's £10,000 target in 2014.

Other key measures for business include a new Employment Allowance, which will cut employer national insurance bills by up to £2,000 from next April, exempting 450,000 small businesses from paying any national insurance contributions.

Homebuyers will also be offered additional support through the extension of shared equity schemes, with the Help to Buy scheme offering loans of up to 20% on new build homes.

The Chancellor's announcements were broadly welcomed by business groups, although they were almost overshadowed by the Evening Standard's premature publication of key elements of the statement before he had risen to deliver his speech.

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


WHAT THEY SAID

This is a Budget for people who aspire to work hard and get on […] Together with the British people we are, slowly but surely, fixing our country's economic problems
Chancellor George Osborne

More of the same is not the answer to the problems of the last three years. More of the same is the answer of a downgraded Chancellor in a downgraded Government
Labour leader Ed Miliband

Business will appreciate many of the Chancellor's measures […] but will wish he had been even more radical in the pursuit of growth
John Longworth, British Chambers of Commerce

The FSB asked for a Budget for small businesses and this is what has been delivered. The Budget opens the door for small firms to grow and create jobs
John Walker, Federation of Small Businesses


FOR THE FULL BUDGET ANNOUNCEMENTS VISIT:

http://www.hm-treasury.gov.uk/budget2013_documents.htm


ON OUR WEBSITE

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Key business and tax information
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An economic overview
The latest forecasts from the Office for Budget Responsibility have added to the economic gloom.
Click here for the full story

Opposition reacts as key Budget details leaked
Politicians gave their reactions to the Budget statement, as it emerged that the Evening Standard had published embargoed details of the Budget.
Click here for the full story

Budget 2013: The business reaction
Business leaders have given their reactions to Chancellor George Osborne's Budget statement.
Click here for the full story

Defiant Chancellor pledges support for an 'aspiration nation'
The 2013 Budget included significant announcements on both business and personal tax.
Click here for the full story