Budget highlights UK’s continued economic strength

Chancellor Alistair Darling has delivered his first Budget announcing a number of measures to sustain business growth in the UK.

Despite the slowdown in the world economy, in 2007 the British economy grew by three per cent

Alistair Darling

UK chancellor

The main rate of corporation tax will be cut from 30 to 28 per cent, giving the UK the lowest rate of all G7 countries.

This will secure the UK’s reputation as "one of the best places in the world to do business" said Mr Darling.

Economy goes from strength to strength

The Budget highlighted that conditions are ripe for businesses expanding in the UK with economic growth surpassing all other G7 countries.

"Despite the slowdown in the world economy, in 2007 the British economy grew by three per cent – the fastest growth of any major economy," noted the chancellor.

He predicted growth of between1.75 and 2.25 per cent in 2008 – ahead of Japan, the US and the rest of the Euro region.

Funding boost for entrepreneurs

Mr Darling told the House of Commons that more will be done to provide long-term support for small businesses and entrepreneurs.

The Small Firms Loan Guarantee scheme, which helps growing firms gain access to capital, will increase by £60 million over the course of the next year.

Increased funding will also be available to businesses from the Enterprise Investment Scheme and Enterprise Management Scheme with an increase in the tax relief threshold for investors.

A capital fund of £12.5million to encourage more female entrepreneurs was also unveiled in by the chancellor.

Opening up public sector opportunities

Greater access to government contracts will help more private businesses access public sector opportunities.

Mr Darling is keen to see 30 per cent of all public sector business handled by small and medium-sized enterprises within the next five years.

Strong welcome for global financial services

Roy Leighton, chairman of UK Trade & Investment’s Financial Services Sector Advisory Board, described the 2008 Budget as highlighting “the UK’s solid economic position in a turbulent global economy”.

He commented: “The Chancellor made clear the UK’s continuing welcome for international participation in our financial services businesses and his desire to foster investment and innovation in both the mature and SME sectors.

“I welcome this approach which underlines the strong view that the UK intends to remain the destination of choice for global financial services investors.”