25 June 2010, 13:16 PM
  • Several business leaders have spoken out about the positive changes in the Chancellor's Budget
     

In particular, small business support group: the Forum of Private Business, believes the 1% cut in small companies’ tax, together with the new £5 million threshold for entrepreneurs’ relief on capital gains tax (CGT), are positive measures which contributed to a business-friendly Budget overall.

The Forum also believes measures to extend the Enterprise Finance Guarantee scheme, abolish back-dated business rates and continue tax breaks for holiday lettings further demonstrate the new Government’s appreciation of small business-related issues.
 
Further pledges to review all employment law, outlined in the full Budget document, have also been warmly welcomed. The proposals, forcing each Government department to review the employment regulations laws for which they are responsible, come following the Forum’s calls for a review of all workplace legislation.
 
Forum chief executive Phil Orford said: “I think many small business owners will be pleasantly surprised by the Budget. Not only did the Chancellor make all the right noises about supporting enterprise and smaller businesses, he backed it up with concrete, tangible policies.”

Jonathan Knight, Chief Executive, for The Regional Food Group for Yorkshire and Humber, agrees that the budget is good news, particularly for food retailers.

“As expected, this budget has been tough, reflecting the current economic times. But we do welcome the Government’s commitment not to introduce VAT on food during its period in office.

“It is further good news for our cider-producing members, who will be raising their glasses as the hike in tax which Labour proposed is scrapped,” he said.

“Delaying the 2.5% VAT increase until January 2011 should encourage consumer sales momentum in the run up to Christmas, which will help the food and drink sector, especially independent retailers and producers,” Mr Knight concluded.