Early Budget focuses on small business

Chancellor Gordon Brown has announced a number of measures in this year's budget that aims to aid UK SMEs.

The Chancellor immediately cut small companies tax 19p from 20p while also abolishing both automatic fines for late VAT payment and stamp duty relief for business transactions in poor areas. Automatic relief for VAT on bad debts for small firms is also on the cards for small businesses.

Mr Brown also earmarked an extra £30 million for small firms training needs and promised direct cash help to small firms filing tax returns online.

Mr Brown also announced a new research and development tax credit for large companies set at 25 per cent, to boost innovation.

The Chancellor revealed British growth of 2.2 per cent last year and predicted this would continue to grow for another two years with a 2.5 per cent to three per cent growth rate in 2004.

Many road users may also be happy with a freeze on fuel duty and road tax, and £55 cut in licence fee for least polluting green vehicles.

The Chancellor also promised new measures to help long-term unemployed while extending a "step up" scheme for unemployed. There was also a lower than expected one per cent increase in National Insurance contributions across the board.

However the big talking point for this year's budget was the Chancellor's ambitious plans to find an extra £4 billion for public services next year. (MB)