Scarborough’s business community has warmly welcomed a number of boosts from this year’s budget.
The chancellor George Osborne yesterday delivered his budget at the House of Commons, revealing a number of incentives and breaks for private sector firms.
Workers will be better off as from 2014, a year earlier than previously planned, employees won’t pay income tax on the first £10,000 they earn.
Employing staff will be made more attractive with a new employment allowance, which will save employers £2,000 on their National Insurance bills.
A scrapping of planned fuel duty rises meant this year’s budget was positively received by Nick Simpson, director of Simpson Transport in Barry’s Lane, said: “This is a very positive budget for us. Fuel duty rises being scrapped is great news as it was taking all the profit out of the business.
“Also we employ all our drivers so National Insurance cuts are quite a big thing for us as it mean we can put that money back into the business. It seems a very pro-business budget.”
The chancellor also introduced tax credits for business research, a move welcome by Scarborough’s engineering community.
Peter Wilkinson, director of manufacturer Unison, and co-founder of Scarborough Engineering Week, said: “We have got 22 engineering companies in Scarborough, so this is a wonderful boost for them. Research and development is vital for a sustainable future, and I would encourage business to exploit this gift from government.”
Stan Dunn, head of tax at Lloyd Dowson Accountants, explained the affect of a 1 per cent cut in corporation tax. He said: “By April 2014, the main rate of corporation tax, which affects company profits over £300,000, will have dropped from 30 per cent in 2007 to only 20 per cent.
“Clearly, this is designed to attract corporate investment into the UK generally and our own business community.”
While beer duty was cut by 1p a pint, a 5.3 per cent increase was added to tobacco tax.