When George Osborne revealed the benefits to the technology sector in the Budget last week it was clear that SMEs and large enterprises could come out on top.
Osborne wants to cultivate growth in the UK economy by introducing a moratorium on “domestic regulations” and increasing small company R & D tax credits by 200 per cent – by encouraging startups and small businesses, generation of future revenues should increase.
Other benefits to the sector include ‘Start-up Britain’, a venture to encourage new business development, and also the government wants to improve the UK’s intellectual property regulations. The Small Business Rate Relief holiday has been extended to October 2012.
Osborne wants to rival the low corporate tax rate of 12.5 per cent that Dublin has to offer, and which Facebook and Google have embraced. He said, “Britain is open for business. We want to make Britain the place where international businesses go, not where they leave.”
There will be a two per cent reduction in corporation tax, instead of the expected one per cent. By 2015 it should be as low as 23 per cent as decreases continue.
21 enterprise zones are also to be set up around the UK with super fast broadband networks and reduced business rates – the last location to be developed will be in London – the mayor, Boris Johnson will have the final say on that.
With 24 new technical colleges being funded to ensure the UK can keep up in the constantly changing digital world it looks like technical talent is not being overlooked – important in a challenging economic climate.