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| Budget 2012: Mixed business reaction to Budget | |
| (about 17 hours later) | |
| George Osborne said the Budget "unashamedly backs business", but the business community has given it a mixed reaction. | George Osborne said the Budget "unashamedly backs business", but the business community has given it a mixed reaction. |
| The Institute of Directors welcomed the cut in corporation tax, but said the chancellor had not done enough overall to help firms. | The Institute of Directors welcomed the cut in corporation tax, but said the chancellor had not done enough overall to help firms. |
| Computer games industry veteran Ian Livingstone was pleased with the news of tax credits for his industry. | Computer games industry veteran Ian Livingstone was pleased with the news of tax credits for his industry. |
| Mr Livingstone, life president of Eidos, said it was "very positive". | Mr Livingstone, life president of Eidos, said it was "very positive". |
| 'Not enough' | 'Not enough' |
| Under the change to corporation tax, the basic rate will fall to 24% next month, down from the current 26%. | Under the change to corporation tax, the basic rate will fall to 24% next month, down from the current 26%. |
| It will then be reduced to 23% next year and 22% in 2014. The rate for small firms will remain at 20%. | It will then be reduced to 23% next year and 22% in 2014. The rate for small firms will remain at 20%. |
| Simon Walker, director general of the Institute of Directors, said: "While any tax reduction is welcome, the chancellor has not done enough to free business from the burdens and barriers that are holding economic growth back. | Simon Walker, director general of the Institute of Directors, said: "While any tax reduction is welcome, the chancellor has not done enough to free business from the burdens and barriers that are holding economic growth back. |
| "There was a bold move on corporation tax, but in the bigger picture, this is still not far enough or fast enough." | "There was a bold move on corporation tax, but in the bigger picture, this is still not far enough or fast enough." |
| John Cridland, director general of the CBI, said the cut in corporation tax could "make a big difference". | John Cridland, director general of the CBI, said the cut in corporation tax could "make a big difference". |
| "By seizing the opportunity to make sure our corporate tax system is more internationally competitive, he has sent a powerful signal to companies to invest, do business and create jobs in the UK," he added. | "By seizing the opportunity to make sure our corporate tax system is more internationally competitive, he has sent a powerful signal to companies to invest, do business and create jobs in the UK," he added. |
| Mr Livingstone added that the introduction of tax credits for the video game, animation and TV production industries would "enable the UK to reclaim its positions as a world leader in games development". | Mr Livingstone added that the introduction of tax credits for the video game, animation and TV production industries would "enable the UK to reclaim its positions as a world leader in games development". |
| "I'm delighted, we have been campaigning on this issue for a number of years," he said. | "I'm delighted, we have been campaigning on this issue for a number of years," he said. |
| 'No difference' | 'No difference' |
| Brewer Chris Gill of Ascot Ales bemoaned the lack of any new support for the UK's micro breweries. | Brewer Chris Gill of Ascot Ales bemoaned the lack of any new support for the UK's micro breweries. |
| With no change to the current 2% per year above inflation rise in alcohol duty, Mr Gill said his industry was "being strangled by punitive taxation". | With no change to the current 2% per year above inflation rise in alcohol duty, Mr Gill said his industry was "being strangled by punitive taxation". |
| "To me, it is a national scandal," he said. "The real ale industry is a growth industry, a growth manufacturing industry, which should be applauded and encouraged." | "To me, it is a national scandal," he said. "The real ale industry is a growth industry, a growth manufacturing industry, which should be applauded and encouraged." |
| Hotelier David Groocock, owner of St Maur Hotel on the Isle of Wight, was also disappointed in the Budget. | Hotelier David Groocock, owner of St Maur Hotel on the Isle of Wight, was also disappointed in the Budget. |
| "I don't think it is going to make any difference to my business at all," he said. | "I don't think it is going to make any difference to my business at all," he said. |
| "For firms of my size, micro-businesses so to speak, the big problem remains a lack of help from the banks." | "For firms of my size, micro-businesses so to speak, the big problem remains a lack of help from the banks." |
| Jenny Lees, owner of Herefordshire-based dental care equipment company Dentanurse, gave the Budget a "mixed reaction". | Jenny Lees, owner of Herefordshire-based dental care equipment company Dentanurse, gave the Budget a "mixed reaction". |
| She said: "What does interest me is the new grants for firms exporting, and the lower interest loans for small firms. I am certainly going to look at both of those. | She said: "What does interest me is the new grants for firms exporting, and the lower interest loans for small firms. I am certainly going to look at both of those. |
| "But small firms could have greatly benefited from a but in business rates, and we got nothing on that." | "But small firms could have greatly benefited from a but in business rates, and we got nothing on that." |
| 'Positive message' | 'Positive message' |
| A stand-out Budget announcement was the decision to reduce the top rate of income tax from 50% to 45% from April next year. | A stand-out Budget announcement was the decision to reduce the top rate of income tax from 50% to 45% from April next year. |
| Accountancy group Ernst & Young said this was a "positive" development. | Accountancy group Ernst & Young said this was a "positive" development. |
| "The UK's arrivals lounges are likely to be booming next year as entrepreneurs respond to a far more positive message from the chancellor," said Chris Sanger, head of tax policy at Ernst & Young. | "The UK's arrivals lounges are likely to be booming next year as entrepreneurs respond to a far more positive message from the chancellor," said Chris Sanger, head of tax policy at Ernst & Young. |
| "The chancellor has put the substance behind his rhetoric; the UK is open for business." | "The chancellor has put the substance behind his rhetoric; the UK is open for business." |
| The Federation of Small Businesses (FSB) said it was pleased with some aspects of the Budget. | The Federation of Small Businesses (FSB) said it was pleased with some aspects of the Budget. |
| FSB national chairman John Walker said: "We are pleased with some of the actions to cut the burden of red tape, help to get our young workers into employment, and measures to improve access to finance. | FSB national chairman John Walker said: "We are pleased with some of the actions to cut the burden of red tape, help to get our young workers into employment, and measures to improve access to finance. |
| "But, to ensure that businesses can be properly supported and to bring together the measures that have been announced, we are disappointed that there were no plans to look into setting up a small business administration - a department to champion small firms at the heart of government with a cabinet level minister." | "But, to ensure that businesses can be properly supported and to bring together the measures that have been announced, we are disappointed that there were no plans to look into setting up a small business administration - a department to champion small firms at the heart of government with a cabinet level minister." |
| Economist Brian Morgan, professor of entrepreneurship at Cardiff Metropolitan University, said there "was much to applaud" in the Budget. | Economist Brian Morgan, professor of entrepreneurship at Cardiff Metropolitan University, said there "was much to applaud" in the Budget. |
| "I particuarly like the new financial support for exporters, the enterprise loans for youngsters, and the changes on tax," he said. | "I particuarly like the new financial support for exporters, the enterprise loans for youngsters, and the changes on tax," he said. |
| "Reducing the top rate of income tax should be applauded." | "Reducing the top rate of income tax should be applauded." |