Small or new businesses to be affected by budget

By BigHospitality Writer

- Last updated on GMT

Related tags: Business, Small business

Brown accused of disguising lack of financial support for small business ventures as IBA is phased out Chancellor Gordon Brown's budget brought few positives for the restaurant industry, with small or new businesses particularly affected by the ...

Brown accused of disguising lack of financial support for small business ventures as IBA is phased out

Chancellor Gordon Brown's budget brought few positives for the restaurant industry, with small or new businesses particularly affected by the changes, according to industry bodies.

Although Brown reduced Corporation Tax from 30 to 28 per cent, he also announced that smaller companies'

Corporation Tax will rise to 22p in 2009, up 2p from the current 20p.

Chief Executive of the Forum of Private Business Nick Goulding said, "The Chancellor has used smoke and mirrors to disguise the fact that there is nothing in this budget to support small businesses.

In fact, the resulting confusion created by some of his initiatives will serve only to increase the red tape burden."

Andrew Burnham, Principal and Head of Travel and Leisure at MacIntyre Hudson, said restaurateurs buying the freehold on their first venture or looking to expand would have to spend more because the Industrial Buildings Allowance is being phased out over the next four years.

Therefore, the relief that would have been given for a fall in value of assets during ownership will now be lost.

Capital allowances on equipment are also being reduced.

However, on the positive side, Burnham said, "They're trying to encourage green equipment so restaurateurs can get accelerated capital allowances for energy-efficient equipment."

Related topics: Legislation

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