The Budget 2015 - key points for small businesses
It's that time again when the red briefcase comes out and George Osborne outlines his plan for the economy. The amount of information can feel overwhelming, so we've picked out the key points that will affect small businesses across the UK.
- The UK has grown faster than any other major advanced economy in the world in the last year - 2.6%!
- Business investment has grown 4 times faster than household consumption since 2010
- The North is growing faster than the South - so we're seeing a truly national recovery
- Britain now has a record employment rate. 1.9% new jobs have been gained, 80% full-time and in skilled occupations (thanks to businesses like you!) For example, a job is created every 10 minutes in the Midlands - impressive - and 1,000 are being created every day across the UK.
- The minimum wage will be raised to £6.70, reaching over £8 by the end of the decade, and the rate of apprentice pay is the highest on record
- The deficit has been halved. By 2018-19 Britain will have a surplus - the first time in 18 years
- 'Google' tax will be brought in at the start of next month, preventing businesses moving profits abroad
- There will be a £60 million investment in industry in the Midlands
- We'll see major investment in the Northern Powerhouse. Greater Manchester and Cambridge will keep 100% of increase in local business rates.
- TV and film tax credits are to be made more generous, and there will be support for the video game industry
- 80% of the population now have access to superfast broadband, and broadband vouchers will be extended to all parts of the country so businesses can improve their connectivity
- Corporation tax is to be cut to 20%
- There will be no NI payments for employing under 21s, getting more young people into work
- Class 2 tax contributions for the self-employed to be abolished. This will help 5 million self-employed!
- Traditional tax return to be abolished - it will all be done digitally, making things easier for small businesses
- Beer duty is to be cut for the third year in the row, by a penny a pint; cider duty will be cut by 2% and wine duty will be frozen
- Raising the personal tax-free allowance will raise to £10,800 next year, and then to £11,000 the year after
- Personal savings allowance to be introduced - people will be able to save £1,000 without having to pay tax