Budget 2008 - What can small businesses expect?

The Chancellor is due to deliver his first Budget speech at 12.30 today (12th March). We will update our dedicated Budget 2008 section with the latest development, tax and allowances tables as soon as they become available.

Although it would seem pointless listing in-depth predictions when the fallout from this year's Budget is just hours away, most commentators are predicting a pretty dire outcome for small business people.

Although the main corporation tax rate is expected to fall from 30% to 28%, we already know that the Small Companies Tax Rate is due to increase over the next 2 years from 20% currently to 22% from April 2009.

Given that growth predictions are likely to be slashed due to a poorer economic outlook, Alistair Darling is unlikely to provide many tax concessions, and will have to find more funds to plug the ever-growing budget deficit. He may seek to increase National Insurance contributions for higher earners, and we already know that he plans to abolish CGT taper relief from April 6th.

Other potential novelties in the Budget include a possible 2p rise in fuel duty (although the BBC suggests this may now be delayed by six months), a large increase in Vehicle Excise Duty on so-called "gas guzzlers", and a wide range of "green" measures.

Check our Budget 2008 section during the day for updates on a Budget which is highly likely to be underwhelming for small businesses.