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Good and bad of latest government budget

16 March 2016

While the news on the UK economy was less than positive, with forecasted growth revised down from 2.4% to 2% for 2016, there were more encouraging details for the FM and wider business sectors within the government’s latest budget.

Reduced rates of headline corporation tax, falling from 17% to 20% by 2020 will combine with the raising of the annual threshold for small business tax relief from £6,000 to £15,000 to deliver benefits for businesses in all sectors.

The news that petroleum tax will also be “effectively abolished”, according to BBC News, will also be welcomed by many businesses, along with the announcement that fuel duty has again been frozen this year.

Further developments including the closing of corporate tax loopholes and tax minimisation schemes, predicted to raise £9bn towards George Osborne’s ongoing efforts to balance the UK economy and reduce deficits.

Public sector employees will also not be able to use personal service companies to reduce tax liabilities.

Increased investment infrastructure includes the HS3 rail link between Manchester and Leeds and Crossrail 2 in London, plus £230m of road improvements for northern England and the halving of River Severn crossing tolls by 2018.

Mr Osborne also used his budget statement to repeat the Office for Budget Responsibility’s statement that the UK would be in a better position if it voted to remain part of the EU within the June referendum.

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