Sometimes the national economic news can seem gloomy with its talk of cuts and retrenchment but the tough measures needed to tackleBritain’s debt and deficit enable our future prosperity. The recent budget made a start at inserting some new optimism into our national affairs, with a focus on growth.
The reduction in Corporation Tax was widely welcomed with the main rate coming down by two per cent in the year. Since April 2011, the rate has been 26 per cent, falling to 23 per cent by 2014. This news will be welcomed by businesses which will retain more funds for new investment and jobs.
At a business and an individual level, we can all operate more effectively in a simplified tax regime. Hence the consultation on integrating the operation of tax and national insurance contributions is good news. This is also the case with abolition of 43 redundant tax reliefs. Simplification of our financial processes is fundamentally empowering and means a reduction in non-productive work. This was the same driver behind the very welcome proposal for a Universal Credit within the benefits system.
The government is also creating 21 new enterprise zones. These areas will benefit from up to 100 per cent business rates discount and the deployment of new superfast broadband. It is hoped thatCrawleymight successfully bid for such a zone with the support of the Coast to Capital LEP (Local Enterprise Partnership).
More than 500,000 businesses will benefit from an extension of the SBSR (Small Business Rate Relief) holiday until October 2012. Of these businesses, around 350 will be paying no business rates at all.
There will also be funding for an extra 80,000 work experience places for young people, meaning that 100,000 places will be available over the next two years. A further £180 million is being allocated to provide up to 50,000 additional apprenticeship places over the next four years. In total, there will be funding for at least 250,000 more apprenticeships than under the previous government.
Last autumn, we had an emergency budget and it was surely necessary to prevent a drift into financial oblivion. These are early days but we are already seeing a projection of economic growth alongside successful deficit reduction. The expected growth figure of is predicted to be competitive within the EU (European Union). Further investment to stimulate growth and create new jobs is the right way forward for a return to sustainable prosperity.
Councillor Bob Lanzer, Leader of Crawley Borough Council
9th May 2011