In the wake of the emergency Budget announcement, we have been looking at what it means for the technology and digital industry and for entrepreneurs.
While green IT and the National Programme for IT took a back seat in George Osborne’s economic plans, the IT industry has emerged relatively unscathed from the coalition’s first budget.
IT entrepreneurs in particular look to benefit from an increase in their tax free income allowance, as the government hopes to combat public spending cuts with tax breaks for the private sector. A concern close to our own hearts, these tax incentives will help to keep talent in the UK and compete on a global level. The commitment to review tax regulation around intellectual property and technological research and development will also enhance the competitiveness of the UK.
Additional positive effects of the Budget will see the capital gains tax rate of 10 per cent for entrepreneurs extended from the first £2million to £5million. North West start ups will also enjoy a holiday from national insurance contributions for their first year of business for the first 10 employees.
Chancellor George Osborne has confirmed that the 50p a month landline tax will also be scrapped with the onus for rolling-out super-fast broadband placed back on the private sector.
Despite an obvious focus on encouraging growth within the industry over the next five years, the Chancellor did announce that the Northwest Regional Development Agency will have many of its powers stripped in lieu of a new ‘local enterprise partnership’. Private sector initiatives such as UKFast’s ‘Growth Through Innovation’ scheme will therefore become more important than ever for aspiring SMEs.