The Institute of Directors has welcomed a number of measures announced in the Budget which will help smaller and medium-sized businesses, including relief on business rates, capital gains tax and a further cut to corporation tax. However, the organisation has also raised questions about how the Chancellor George Osborne intends to run a Budget surplus by 2019-2020.
“There was plenty in the Budget for small and medium-sized businesses,” asserted Simon Walker, director general of the IoD. “They will welcome measures including more relief on business rates and cuts to capital gains tax, and a further corporation tax reduction coming in a few years. Business leaders and workers alike will be pleased with increases to the income tax personal allowance and the higher rate thresholds next year, while the introduction of a lifetime ISA will be a big boost for younger people who’ve been put off somewhat by the inflexibility of pensions.”