George Osborne’s budget was positioned as ‘tough but fair’. While it did include plans to increase VAT to 20%, it also pledged to reduce Corporation tax to 20% and offered tax breaks on National Insurance contributions.
Osborne said that they budget was devised with the objective of informing the global economy that Britain was ‘open for business’ and it is clear from the concessions the budget makes for small businesses that they coalition government are more than aware that it will be enterprise that will drive our economic recovery.
However, while the budget has received fairly positive feedback from small business and company formation group, many have criticised it for failing to apply the same CGT ‘entrepreneurs’ relief’ to employees.
Osborne’s budget came under fire from many business owners – including Apprentice star Lord Alan Sugar- for plans to increase Capital Gains Tax. However, when the ‘Emergency Budget’ was announced on Tuesday, Osborne attempted to placate the company formation and small business sector by doubling the planned tax reduction for entrepreneurs. Yet now, many business owners are asking why the same relief hasn’t been extended to employees who have shares in the company they work for, through the Enterprise Management Incentive. Devised to help employers incentives staff beyond financial bonuses and salary increases.