Many industry figures have praised George Osborne for the pro-enterprise measures he included in last week’s Budget, with further measures to encourage entrepreneurism in the classroom announced this week.
Enterprise measures in Budget 2011
The latest Government measures aimed at injecting growth back into the private sector, include:
- A surprise 2p cut in the main Corporation Tax rate from 1st April 2011 (from 28p to 26p), followed by further 1p cuts in subsequent years until the rate reaches 23p in 2014.
- 11 Enterprise Zones will be created across the UK, with simplified planning rules and tax breaks. Local areas will bid for a further 10 Zones.
- The rate of small business R&D tax relief will increase to 200% in 2011, and 225% in 2012.
- Income tax relief on investments in the Enterprise Investment Scheme will rise from 20% to 30% from April 2011.
- The lifetime allowance under the Entrepreneurs’ Relief scheme is to double from £5m to £10m from April 2011.
- The Enterprise Finance Guarantee scheme will now continue until 2014, providing up to £2bn in loans.
- There will be a moratorium exempting small businesses from domestic regulations for three years from April 2011 (firms with less than 10 employees qualify).
- The Government has launched a new £37.5m Enterprise Capital Fund to support small companies with the highest potential to grow.
- An overall commitment to cutting the amount of red tape small companies have to deal with.
- Small business rate relief scheme has been extended for another year (it was due to end on 30th September 2011). Provides 100% relief on properties with rateable value of £6,000. Tapered relief up to £12,000.
The Departments for BIS has also announced the following measures this week:
- Support for every school to run its own business through the Enterprise Champions Programme.
- Roll-out of Tenner Tycoon, the competition run by the Peter Jones Foundation which gives young people the opportunity to take forward their business ideas.
- Creation of enterprise societies in every University and most Further Education Colleges to develop students with the ambition and skills for enterprise.
- A new online tool, the Innovation Launch Pad, enabling small businesses to pitch their ideas on how they could deliver better value for money for Government.
- The launch of Brighton Fuse, to expand the creative, digital and IT sector in Brighton and Hove and provide business opportunities for graduates.