News: The Budget 2013
Chancellor George Osborne presented "a Budget for our Aspiration Nation" yesterday, but what does it mean for Rotherham business?
For small businesses, new initiatives could see them not having to make any NI payments as up to £2,000 is to be taken off National Insurance Contributions (NIC) from April. The "Employment Allowance" is aimed at small firms in a bid to help them create more jobs and take on more staff.
Mr Osborne explained to the House of Commons: "For the person who's set up their own business, and is thinking about taking on their first employee - a huge barrier will be removed.
"They can hire someone on £22,000, or four people on the minimum wage, and pay no jobs tax."
Other measures for small firms include growth vouchers to help with expert advice on expansion and R&D tax credits will be increased to 10%. The government has also committed for more of their own spend to go to small firms through improvements to public procurement.
The limit at which income tax is paid is to increase to £10,000 in 2014 - a year earlier than planned and other measures for business include a cut in corporation tax by 1% to 20% in 2015, a tax relief for investment in social enterprises, and the removal of stamp duty on shares traded on growth markets like AIM.
To support economic growth, the government will allocate an extra £3bn a year to infrastructure projects. This will be from 2015 with details on the exact projects to be announced in the next spending review.
Plans outlined earlier in the week to place Local Enterprise Partnerships (LEPs) at the heart of growth in the regions were confirmed with LEPs charged with putting together local growth plans. They will then be able to bid into a single pot of funding to support their plans but the size of this Single Local Growth Fund is yet to be announced.
James Newman, chairman of the Sheffield City Region LEP, said: "We agree that the prosperity of this country was built on strong local leadership, and we intend to forge ahead, with all our partners, to create jobs and improve the quality of life of local residents."
The chancellor also announced that the government's Industrial Strategy has been allocated an additional £1.6 billion of funding. This follows from the £2 billion investment in aerospace manufacturing announced earlier in the week that will support cutting edge work like that of the University of Sheffield Advanced Manufacturing Research Centre (AMRC) with Boeing carried out on the Advanced Manufacturing Park in Rotherham.
Also specific to Rotherham is the news that energy intensive industries such as metal processing and mining are to be exempt from the climate change levy (CCL), a tax on energy delivered to non-domestic users.
Rotherham MP, John Healey who campaigned on the issue, welcomed the news. He said: "I have the honour of representing a steel area in Rotherham. Steel is one of this country's strategic industries, and the chancellor's announcement today will be very welcome in my constituency. It will help to secure the industry for the future, and I hope that it will also help to secure extra investment from Tata Steel."
Measures were also announced to support housebuilding and to boost lending from the banks. A £1bn Business Bank is also planned.
HM Treasury website
Images: George Osborne / twitter
For small businesses, new initiatives could see them not having to make any NI payments as up to £2,000 is to be taken off National Insurance Contributions (NIC) from April. The "Employment Allowance" is aimed at small firms in a bid to help them create more jobs and take on more staff.
Mr Osborne explained to the House of Commons: "For the person who's set up their own business, and is thinking about taking on their first employee - a huge barrier will be removed.
"They can hire someone on £22,000, or four people on the minimum wage, and pay no jobs tax."
Other measures for small firms include growth vouchers to help with expert advice on expansion and R&D tax credits will be increased to 10%. The government has also committed for more of their own spend to go to small firms through improvements to public procurement.
The limit at which income tax is paid is to increase to £10,000 in 2014 - a year earlier than planned and other measures for business include a cut in corporation tax by 1% to 20% in 2015, a tax relief for investment in social enterprises, and the removal of stamp duty on shares traded on growth markets like AIM.
To support economic growth, the government will allocate an extra £3bn a year to infrastructure projects. This will be from 2015 with details on the exact projects to be announced in the next spending review.
Plans outlined earlier in the week to place Local Enterprise Partnerships (LEPs) at the heart of growth in the regions were confirmed with LEPs charged with putting together local growth plans. They will then be able to bid into a single pot of funding to support their plans but the size of this Single Local Growth Fund is yet to be announced.
James Newman, chairman of the Sheffield City Region LEP, said: "We agree that the prosperity of this country was built on strong local leadership, and we intend to forge ahead, with all our partners, to create jobs and improve the quality of life of local residents."
The chancellor also announced that the government's Industrial Strategy has been allocated an additional £1.6 billion of funding. This follows from the £2 billion investment in aerospace manufacturing announced earlier in the week that will support cutting edge work like that of the University of Sheffield Advanced Manufacturing Research Centre (AMRC) with Boeing carried out on the Advanced Manufacturing Park in Rotherham.
Also specific to Rotherham is the news that energy intensive industries such as metal processing and mining are to be exempt from the climate change levy (CCL), a tax on energy delivered to non-domestic users.
Rotherham MP, John Healey who campaigned on the issue, welcomed the news. He said: "I have the honour of representing a steel area in Rotherham. Steel is one of this country's strategic industries, and the chancellor's announcement today will be very welcome in my constituency. It will help to secure the industry for the future, and I hope that it will also help to secure extra investment from Tata Steel."
Measures were also announced to support housebuilding and to boost lending from the banks. A £1bn Business Bank is also planned.
HM Treasury website
Images: George Osborne / twitter
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