Osborne’s Budget receives backing of Fenland firm

BELEAGUERED chancellor George Osborne’s Budget has received the support of a Fenland-based accountancy firm.

Chartered accountants Moore Thompson, who have an office in Wisbech, say while the Budget offered limited reward for small businesses, a reduction in employer national insurance contributions should be welcomed.

In his Budget, Osborne’s headline announcement was that £2,000 will be taken off employers’ National Insurance (NI) bills from April 2014, meaning that 450,000 small and medium size businesses will no longer be required to pay employer National Insurance.

The Income Tax threshold is being raised to £10,000 in 2014 – a year earlier than planned – while the Government is also introducing a 20 per cent tax relief on childcare vouchers up to £6,000 per child from 2015.

Mark Hildred, managing partner at Moore Thompson, said: “While we weren’t expecting anything major from this Budget, the £2,000 reduction in employer national insurance contributions is a surprising, and welcome, measure.

“Not only will it take 450,000 small and medium size businesses out of employer national insurance contributions, it will give them the confidence to invest in their businesses.”

Other measures introduced to help businesses included a reduction of one per cent in the top rate of Corporation Tax to 20 per cent by April 2015, while shares traded on growth markets will be exempt from Stamp Duty.