Corporate Tax Rates Down but High UK VAT Rates remain - Re-introduction of 'Enterprise' Zones
Britain is Ready for Business
(1888PressRelease) April 01, 2011 - George Osborne's 2011 Budget provides a mixed bag of good and bad from the perspective of those considering starting up in business.
The general UK economy is still very weak and little has really been done to address the most serious problem facing both business start ups and growing businesses' namely financing and liquidity. Over the last year there has been much talk about helping small business gain access to business finance but from a random survey carried amongst Starting.
My Business clients it is clear that there are still very significant problems, which must be addressed if the UK is to get its economy on track .
In respect to the Chancellor's reintroduction of 'enterprise' zones, this has been greeted with some skepticism by economists as it has historically been deemed to distort the free market and result in a misapplication of resources.
On a more positive note the Chancellor has proactively reduced corporate taxes to 27% from the beginning of April and 1 percent every year thereafter until the rate reaches 24 percent.
However, the now standard rate of VAT at 20% (replacing the earlier 17.5% rate) will despite the Chancellor's contentions, not be seen by the business community as sending out a sign to the world that "Britain is Ready for Business" quite the opposite in fact.
There is also substantial debate whether the effective 'nationalization' of the company formation business from the 6th of April with the introduction by Companies House of the citizens incorporation service will really make any difference to helping business 'start-up's' as the UK already has some of the most efficient and cost effective company formation services in Europe but what is sure is that one small business sector, that of company formation agents, will be decimated as a result!
In precis, the 2011 Budget is not a catastrophe for the small business sector but there is undoubtedly substantial hyperbole from the Chancellor and a total failure to address the key issue of raising finance on reasonable terms for small business.
Corporate Tax Rates Down but High UK VAT Rates remain - Re-introduction of 'Enterprise' Zones 
Britain is Ready for Business 
Satisfied Users & 
Approved Press Releases
Print
Email
Report Spam
