Osborne ‘backs small business’ but warns of EU uncertainty
CHANCELLOR George Osborne produced what he claimed was a ‘low tax, enterprise Britain’ despite slowing growth rates.
Mr Osborne opened his Budget with some stark warnings: that financial markets are “turbulent”, western productivity growth is “low” and the outlook for the global economy is “weak”.
“It makes for a dangerous cocktail of risks,” he warned, adding it was one that Britain is “well-prepared to handle, if we act now so we don’t pay later”.
He said his eighth Budget was one to “choose to put stability first and lead the world with long term solutions to long term problems” and to “make Britain fit for the future”.
The OBR confirmed GDP growth was 2.2% in 2015 and is predicted to be 2% this year; revised down from 2.4% in November’s Autumn Statement. It will be 2.2% in 2017 and then 2.1% for the following three years.
Mr Osborne’s statement comes three months before the UK votes on its EU membership. Osborne made it clear that the OBR forecast is predicated on Britain staying in the European Union.
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Nick Blundell, Executive Director, EY in the Midlands, said: “There were a lot of surprises in the speech and I think SMEs will benefit. The Government will be able to raise revenue but the increased burden will fall on larger companies.
“The extension of Stamp Duty reductions to commercial properties will also help many small firms, as will the further reductions to Corporation Tax.
“On a personal level I think higher taxpayers will be pleased by the raise in threshold to £45,000 and the improvement in personal tax allowances will also help the lower paid.
“I think younger people will also react well to the new Lifetime ISA as it simplifies pension arrangements and will hopefully encourage more to save.”
