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Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities.

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Budget 2010 - The 'Budget for Recovery'

Weybridge-based accountancy firm, Midgley Snelling, is encouraging clients to pay close attention to this year’s Budget and the changes it has made to assist the growth and development of UK businesses.

Alistair Darling dubbed the latest Budget, his third, and last before the general election, as the ‘budget which would set out a route to long term recovery’ for the country’s weakened economy, with a plan to increase investment in small and medium sized businesses at its centre.

The Chancellor said that although the future is looking brighter for the UK economy, it is at a crossroads and is still in a ‘period of uncertainty’. However, he did say that he wants to do all he can to help businesses through this tough time, with a list of actions aimed at smaller firms.

Darling outlined plans to provide £2.5bn in support for small businesses to boost skills and innovation, as well as the doubling of the annual investment allowance from £50,000 to £100,000.

Part of the programme to help boost innovation in enterprise is a plan for everyone in the UK to have access to broadband internet, with a view to support and encourage digital business development.

The relief on entrepreneur capital gains tax will also be doubled, and there will be cut in business rates for one year from October, meaning that around half a million companies will see a saving on their overall tax bill.

Darling said that although the UK is slowly emerging from the recession, any signs of growth cannot be taken for granted. He acknowledged that the Government has an integral role to play in helping businesses grow, and that access to finance is essential in order for this to happen. To this end, the Chancellor announced that over the next year he has agreed with RBS and Lloyds banks for them to lend at least £94bn, with 50% of this going to small to medium sized businesses.

Continuing with the theme of aiding SMEs, Darling also announced plans to create a new investment corporation – UK Finance for Growth – designed to oversee the Government’s £4bn range of support services for businesses. He also promised to increase the number of Government contracts that are given to small-medium sized firms by 15%.

Other points worth noting include the fact that the Inheritance tax threshold will now be frozen for four years, and there is a predicted growth of 1-1.25% for the UK economy in the next year, with a downgraded growth forecast of 3-3.5% for 2011.

Some may also be relieved to learn that there were no planned changes to VAT or income tax announced this time around.

James Beecher of Midgley Snelling, said: “Some of the planned changes could signal some light at the end of the tunnel for the UK’s smaller enterprises, both established and emerging.

“This sector has faced a difficult couple of years, and so it is good news that the Government now seems to be paying attention and making moves to help these businesses grow, with the ultimate aim of aiding the economy’s recovery.”

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