What Budget 2016 means for entrepreneurs

Commenting on today’s Budget, Entrepreneurs Network director Philip Salter said:

“Cuts to growth forecasts may not have been what George Osborne and the country at large wanted, but for entrepreneurs, this was a solid Budget. Reducing corporation tax to 17% by 2020 sends the right signal that Britain is the best place in Europe to build a business, as does the cut to capital gains tax from the higher rate of 28% to 20% and the basic rate from 18% to 10%.

“Abolishing Class 2 National Insurance for 3.4 million self-employed people will act as a fillip for the self employed. But Osborne should have also tackled National Insurance by rolling both employees’ and employers’ NI into income tax. After all, the incidence falls on employees, and the burden falls on those businesses forced to manage the growing bureaucracy of exemptions.

“Perhaps the biggest surprise for entrepreneurs and investors was the extension of Entrepreneurs’ Relief to include long term investors in unlisted companies. This should help drive more risk capital into fast-growing companies.

“The cuts to business rates will be celebrated by many in the small business community, but it should be remembered that most economists calculate that the incidence of this tax actually falls on landowners. However, reform to Stamp Duty Land Tax on non-residential property transactions, which the government predicts will see a cut in tax for many small businesses purchasing property, is to be welcomed. Stamp duties are always and everywhere inefficient taxes.”