Budget: Regions wait for clarity
NO direct cuts to public sector funded business services organisation were announced by Mr Osborne today, but the future of organisations such as Business Link remains unclear.
Earlier speculation over cuts to spending had led to rumours that public sector funded business support organisations could be under threat.
But today Mr Osborne made no mention of Business Link or plans for the future role of regional development agencies, although he did announce the creation of a Regional Growth Fund to support capital projects in the regions with priority given to those that have the “greatest economic impact”.
A White Paper is set to be published on tackling regional economic differences in Britain later in the summer followed by a paper on rebalancing the economy of Northern Ireland.
The upgrade of the Tyne and Wear Metro, extension of the Manchester Metrolink, redevelopment of Birmingham New Street station and improvements to the rail lines to Sheffield and between Liverpool and Leeds will go ahead.
In addition, anyone who sets up a new business outside London, the South East and the East of England will be exempt from £5,000 of National Insurance contributions for each of the first 10 employees they hire.
There was no mention of an end to the ‘time to pay’ tax payment relief scheme introduced by the last government to help SMEs.
The Lib-Dems got their wish this budget with the Chancellor announcing a possible aviation tax per plane rather than per person.
Mr Osborne said the government will “explore changes to the aviation tax system” such as switching from a per-passenger to a per-plane levy. It will consult on major changes.
But other than the mention of the creation of a Green Investment Bank to fund investments in the renewable energy sector the environment wasn’t a priority this budget.
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