Chancellor’s Budget falls short on growth
Mar 25 2011
George Osborne's Budget was not entirely pro-growth, says a poll
The majority of people, or 95 per cent, do not think Chancellor George Osborne entirely met his objective to deliver a ‘Budget for growth’.
Some 27 per cent of the 614 people polled immediately after Osborne announced the measures on 23 March by accountancy firm RSM Tenon say he didn’t present the Budget he’d promised.
Nearly half of respondents are waiting for ‘the dust to settle’ before deciding whether the measures are pro-growth.
Only 5 per cent of those polled believe that Osborne delivered the Budget he said he would.
But Andrew Hubbard, RSM Tenon’s chair of tax, says the Budget was pro-business.
‘Confidence is key to economic growth, and there’s no doubt the Chancellor has made businesses the focus of the Budget in order to drive the economy forward,’ he argues.
Hubbard welcomes the doubling of entrepreneurs’ relief to £10 million and the changes to the Enterprise Investment Scheme (EIS), which he believes will encourage investment in businesses.
From April this year, income tax relief will increase from 20 per cent to 30 per cent for investors who commit to businesses through the EIS, in line with current tax relief for Venture Capital Trust (VCT) investment.
For both the EIS and VCTs, the size limit on companies eligible for investment will be increased, from 50 to 250 employees and from £7 million to £15 million in gross assets.
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