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Thursday, 23 April 2009

Budget 2009: Your Response

by Ilona Krohn, Principal Economic Advisor

The Chancellor presented his Budget on Wednesday and came up with few surprises. The main points are listed below.
We are now looking for your response. It will only take a couple of minutes.

Please click here to go to the survey

Results will be published on our website and form the basis of our updated version of Action for Business.

Thanks you very much for your support!

Overall summary of confidence and growth:
  • National debt forecast to be 59% of GDP this year
  • Borrowing will be £175billion in 2009/10
  • Borrowing will be £173billion in 2010/11
  • Economy will shrink by 3.5% this year
  • Economy forecast to grow 1.25% in 2010
  • CPI Inflation forecast to be 1% by the end of the year

Summary of measures targeted to help businesses

Tax & Relief

  • Extension of HMRC's Business Payment Support Service
  • VAT reduction will continue until December
  • Loss making firms will be able to reclaim taxes on profit made in last 3 years
  • Car scrappage scheme confirmed to encourage people to buy greener cars
  • Increase in capital allowances for new investment to 40% for one year
  • Petrol: +2% in September plus 1% each April annually thereafter
  • Income tax for those earning more than £150,000 to rise to 50% from April 2010
Business Support
  • A £750 million Strategic Investment Fund to support advanced industrial projects of strategic importance
  • Credit insurance scheme announced to support medium-risk businesses whose cover has been reduced rather than withdrawn
  • Guaranteed job, training or placement to 18-24 years olds who have been unemployed for 12 months
  • 75 million over the next two years for energy and resource efficiency in business, public buildings and households. Through an estimated 350 loans to businesses.
More information:

HMRC Business Payment Support Service
http://www.hmrc.gov.uk/budget2009/bus-payment-support-582.pdf

Loss Carry Back
http://www.hmrc.gov.uk/budget2009/bn13.pdf

Capital Allowances
http://www.hmrc.gov.uk/budget2009/bn04.pdf

Budget notes, a breakdown of announcements, press notices.
HMRC website

Download the complete budget
Full Budget Report

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