Help for exporters and tax-breaks for buying new equipment from George Osborne were at the centre of budget measures targeted at the business community
Help for exporters and tax-breaks for buying new equipment were at the centre of budget measures targeted at the business community and improving Britain's sluggish record on selling goods overseas.
The chancellor said exports to emerging markets such as Brazil, India and China were rising fast but from a low base, as the Treasury seeks to reach a self-imposed objective of doubling UK exports to £1tn by 2020.
To support businesses in international markets, George Osborne pledged to double the amount the government provides for export finance to £3bn, while slashing interest charged on that support by a third.
Export finance underpins overseas sales by offering companies loans, credit guarantees and insurance that help with issues such as non-payment and other financial problems. "For many firms, the truth is you can only win the contract if you are backed by competitive export finance. Instead of having the least competitive export finance in Europe we will have the most competitive," Osborne said.
The Confederation of British Industry welcomed the change but said the government needed to do more to encourage uptake by companies.
"The doubling of the direct lending scheme and the cutting of its interest rates should strengthen the UK export finance armoury. The government must now work much harder to promote these schemes, since many fast-growing firms are unaware of the support available."
The other main plank of the chancellor's business-boosting measures was a doubling of the tax-free annual investment allowance to £500,000. The allowance is designed to encourage acquisition of new equipment - from cars to tools and machinery - by waiving tax payments on investments worth up to £500,000.
Since becoming chancellor in 2010, Osborne has repeatedly said Britain's economy needs to "rebalance" away from consumer spending and financial services. In 2011 he declared a "march of the makers" to get manufacturers, many of them SMEs, exporting more to high-growth markets.
In his response to the Chancellor's speech, Labour leader Ed Miliband said manufacturing output, construction and infrastructure spending were down under Osborne.
"Every time he comes to this house he promises a rebalancing and every time he fails," Miliband said.
The chancellor also promised start-up support for new routes to emerging markets from airports outside London such as Leeds and Liverpool and Inverness, in a bid to open up overseas markets to firms based outside the capital. Supporters of airport enlargement have also argued that a lack of runway capacity is stymying access to potential trade partners.
In the latest government attempt to beef up the UK's industrial base, the chancellor announced a number of measures including: new centres of excellence for cell therapy, the wonder-material graphene and postgraduate training; and grants for small businesses to take on 100,000 more apprentices. The support for specific industries is an extension of an industrial strategy supported by business secretary Vince Cable which has seen the government pour investment into the car and aerospace sectors in particular.
Osborne extended tax breaks and business rate discounts for the government's enterprise zones - which benefit from simplified planning rules, tax breaks and super fast broadband - and announced Northern Ireland's first enterprise zone near Coleraine.
The rate for small companies' research and development tax credit will rise to 14.5% from 11%, providing more support for SMEs that often make losses in their early years.
Osborne also promised to cut businesses' energy costs by £7bn to help energy-intensive sectors such as steel, chemicals and paper mills.
"We're not going to have a secure economic future if Britain doesn't earn its way in the world. We need our businesses to export more, build more, invest more and manufacture more," Osborne said.
The attempt to cut energy costs was welcomed by the food and drink sector, Britain's largest manufacturing industry. "These changes will provide welcome relief to businesses large and small throughout the UK's largest manufacturing sector and reward those who invest in energy efficient technologies," said Melanie Leech, Director General at the Food and Drink Federation.
Responding to the changes in capital allowances, Lee Hopley, chief economist at the EEF manufacturers' organisation, said: "Doubling the investment allowance will offer a big boost to spending on modern plant and machinery. It will capture more of manufacturers' investment on new equipment and technology which are key to a shift in our productivity performance. The Office for Budget Responsibility's estimates that this could pull forward £1bn of investment highlight the significance of the move."
However, the Association of Taxation Technicians said the increase would have little benefit for most small and medium enterprises (SMEs) and would create confusion because the increased allowance expires at the end of next year.
"For the vast majority of SMEs, this temporary doubling will be irrelevant. What concerns them far more is what will happen when we come to the end of the temporary enhanced limit," said Nunn.
*Libor fines *
*Terry Macalister*: The scale of wrongdoing in the City of London is so much higher than expected that the chancellor has been able to widen his cash handouts to an increasing number of good causes.
George Osborne originally said he would donate cash derived from fines levied as a result of the Libor scandal to charities associated with the armed forces but he is now planning to The extent of the largesse is expected to grow further as City financiers and traders have become embroiled in a new investigation over potential manipulation of the foreign exchange markets.
The chancellor said he wanted the penalties paid by those who had demonstrated the worst of values to support those who demonstrate the best of British values. "I'm talking about the men and women in our armed forces who risk their lives to keep us free. So I will continue to direct the use of the Libor fines to our military charities and our emergency service charities, too. Reported by guardian.co.uk 8 hours ago.
Help for exporters and tax-breaks for buying new equipment were at the centre of budget measures targeted at the business community and improving Britain's sluggish record on selling goods overseas.
The chancellor said exports to emerging markets such as Brazil, India and China were rising fast but from a low base, as the Treasury seeks to reach a self-imposed objective of doubling UK exports to £1tn by 2020.
To support businesses in international markets, George Osborne pledged to double the amount the government provides for export finance to £3bn, while slashing interest charged on that support by a third.
Export finance underpins overseas sales by offering companies loans, credit guarantees and insurance that help with issues such as non-payment and other financial problems. "For many firms, the truth is you can only win the contract if you are backed by competitive export finance. Instead of having the least competitive export finance in Europe we will have the most competitive," Osborne said.
The Confederation of British Industry welcomed the change but said the government needed to do more to encourage uptake by companies.
"The doubling of the direct lending scheme and the cutting of its interest rates should strengthen the UK export finance armoury. The government must now work much harder to promote these schemes, since many fast-growing firms are unaware of the support available."
The other main plank of the chancellor's business-boosting measures was a doubling of the tax-free annual investment allowance to £500,000. The allowance is designed to encourage acquisition of new equipment - from cars to tools and machinery - by waiving tax payments on investments worth up to £500,000.
Since becoming chancellor in 2010, Osborne has repeatedly said Britain's economy needs to "rebalance" away from consumer spending and financial services. In 2011 he declared a "march of the makers" to get manufacturers, many of them SMEs, exporting more to high-growth markets.
In his response to the Chancellor's speech, Labour leader Ed Miliband said manufacturing output, construction and infrastructure spending were down under Osborne.
"Every time he comes to this house he promises a rebalancing and every time he fails," Miliband said.
The chancellor also promised start-up support for new routes to emerging markets from airports outside London such as Leeds and Liverpool and Inverness, in a bid to open up overseas markets to firms based outside the capital. Supporters of airport enlargement have also argued that a lack of runway capacity is stymying access to potential trade partners.
In the latest government attempt to beef up the UK's industrial base, the chancellor announced a number of measures including: new centres of excellence for cell therapy, the wonder-material graphene and postgraduate training; and grants for small businesses to take on 100,000 more apprentices. The support for specific industries is an extension of an industrial strategy supported by business secretary Vince Cable which has seen the government pour investment into the car and aerospace sectors in particular.
Osborne extended tax breaks and business rate discounts for the government's enterprise zones - which benefit from simplified planning rules, tax breaks and super fast broadband - and announced Northern Ireland's first enterprise zone near Coleraine.
The rate for small companies' research and development tax credit will rise to 14.5% from 11%, providing more support for SMEs that often make losses in their early years.
Osborne also promised to cut businesses' energy costs by £7bn to help energy-intensive sectors such as steel, chemicals and paper mills.
"We're not going to have a secure economic future if Britain doesn't earn its way in the world. We need our businesses to export more, build more, invest more and manufacture more," Osborne said.
The attempt to cut energy costs was welcomed by the food and drink sector, Britain's largest manufacturing industry. "These changes will provide welcome relief to businesses large and small throughout the UK's largest manufacturing sector and reward those who invest in energy efficient technologies," said Melanie Leech, Director General at the Food and Drink Federation.
Responding to the changes in capital allowances, Lee Hopley, chief economist at the EEF manufacturers' organisation, said: "Doubling the investment allowance will offer a big boost to spending on modern plant and machinery. It will capture more of manufacturers' investment on new equipment and technology which are key to a shift in our productivity performance. The Office for Budget Responsibility's estimates that this could pull forward £1bn of investment highlight the significance of the move."
However, the Association of Taxation Technicians said the increase would have little benefit for most small and medium enterprises (SMEs) and would create confusion because the increased allowance expires at the end of next year.
"For the vast majority of SMEs, this temporary doubling will be irrelevant. What concerns them far more is what will happen when we come to the end of the temporary enhanced limit," said Nunn.
*Libor fines *
*Terry Macalister*: The scale of wrongdoing in the City of London is so much higher than expected that the chancellor has been able to widen his cash handouts to an increasing number of good causes.
George Osborne originally said he would donate cash derived from fines levied as a result of the Libor scandal to charities associated with the armed forces but he is now planning to The extent of the largesse is expected to grow further as City financiers and traders have become embroiled in a new investigation over potential manipulation of the foreign exchange markets.
The chancellor said he wanted the penalties paid by those who had demonstrated the worst of values to support those who demonstrate the best of British values. "I'm talking about the men and women in our armed forces who risk their lives to keep us free. So I will continue to direct the use of the Libor fines to our military charities and our emergency service charities, too. Reported by guardian.co.uk 8 hours ago.