Budget - March 2011

On 24 March 2011, George Osborne presented his second Budget as Chancellor. 

The Highlights

With Government borrowing at an all-time high, a lower growth forecast for the economy and rising inflation, the Chancellor had little real scope for manoeuvre. He recognised, however, that tax hikes and expenditure cuts alone will not solve the UK’s problems: a revival of the economy is needed. His aim is to create the most competitive corporate tax system in the G20 and to have the lowest corporate tax rate in the G7.

In this, his second Budget, George Osborne introduced a number of reliefs and incentives for businesses and for those who invest in them. These incentives include enhancements to the Enterprise Investment Scheme and Entrepreneurs’ Relief and a reduction in the rate of Corporation Tax.

Two significant steps were taken towards simplifying the UK tax system. Firstly, the Chancellor has accepted the recommendation of the Office of Tax Simplification to abolish 43 “redundant” tax reliefs. Secondly, he has grasped a nettle that his predecessors have avoided and has announced that the Government intends to consult on the options for integrating the operation of income tax and national insurance.

read more in our Budget Report

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