Darling’s first Pre-Budget Report
The Chancellor, Alistair Darling, has delivered his Comprehensive Spending Review and Pre-Budget Report, but is there anything within his main points of particular relevance to British business?
Firstly, he revised downwards the growth rate of the economy next year from 2.5%-3% to between 2% and 2.5% but expects growth to be around 3% in the year 2009/2010, saying that despite recent worldwide economic events, including increased raw material costs and financial uncertainty, the British economy remains strong.
He stated that he intends to simplify the tax system, thereby allowing half a million business to function easier and save businesses £1,000,000 a year, though with no details of quite how he is going to do so as yet.
The main rate (full rate) of Corporation Tax (Corporate Tax) will be cut by 2% to just 28% next year, apparently the lowest rate in all of the G7 economies.
Capital Gains Tax is to be reformed as part of an attempt to make the tax system simpler with a single rate of 18% for all, effectively abolishing taper relief.
