United Kingdom

Budget hopes prior to local elections


Chancellor George Osborne gave a grim picture of public spending and borrowing yesterday (23rd March 2011) in his annual budget statement but handed out some money to key groups.

There was some relief for individuals including first time buyers, low and middle income earners and transport firms.

The main benefits came for small businesses and the business community in general with Corporation Tax being cut by 2%, 21 new Enterprise Zones being set up, new export credits and help with small firms involved in technology and research & development (R&D).

Mr Osborne also provided incentives for foreign investment and entrepreneurs.

Much of the money he gave away will be recouped through higher taxes and claw backs from the banks and oil companies. High earners and non-doms were also losers.

The Chancellor will be hoping that his giveaways to voters will be enough to prevent meltdown of the coalition Conservative and Liberal Democrat parties in local elections which are due on 5th May 2011. There will also be elections in Scotland and Wales on the same day.

The opposition Labour Party has been doing well in both recent parliamentary and local by elections.

The full text of the Budget can be found on the UK Links page

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