Budget Special

In his 2009 Budget, the Chancellor predicted that economic growth will fall by 3.5 per cent over the year and said that government borrowing will hit £175 billion. Raising income tax for high earners to 50 per cent as from next April, Mr Darling also pledged various support measures for business, including a credit guarantee scheme and a temporary 40 per cent capital allowance rate, and committed the government to a £1.7 billion job creation package.

Our website at www.bennettbrooks.co.uk contains comprehensive coverage of the key measures contained in the 2009 Budget. This is based on the press releases published immediately after the Chancellor's speech.

The site now contains a newly updated summary of 2009/10 tax rates and allowances.

News Round-Up

The Chancellor has announced a new temporary rate of first year allowance on plant and machinery of 40 per cent. (View more information on our website)

Trading Loss

Extension of trading loss carry back for businesses The government has given some relief to businesses suffering from the effects of the recession by allowing current losses to be carried back against profits of the previous three accounting periods.  (View more information on our website)

Individual savings accounts

The ISA limit will be raised to £10,200, up to £5,100 of which can be saved in cash. (View more information on our website)

Business reaction to the Budget

The general consensus among the business community is that, while the 2009 Budget contained some useful measures, it did not do enough to tackle the problems facing both the economy and individual firms.  (View more information on our website)
 

Quotes on The Budget

"The Chancellor¹s economic forecasts for next year and beyond look optimistic. On the fringes of this Budget, there are some worthwhile micro measures, including support for businesses struggling to access trade credit insurance. The changes on investment allowances and the ability for firms to carry forward losses are also welcome." Richard Lambert, Director General of the CBI

"If the Government wishes to make the fiscal stimulus work, then it needs to stop talking about tax increases. While tax rises have been brought forward in order to balance the books, it does nothing to encourage spending." Chas Roy-Chowdhury, Head of Taxation at the Association of Chartered Certified Accountants

"As we have seen with previous Budgets the challenge will be to ensure that businesses are able to take advantage of the new measures announced today with the minimum of delay." Michael Izza, Chief Executive of the Institute of Chartered Accountants in England and Wales


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