That was a budget and a half! Dramatic and radical, and I suspect detailed analysis will take some time, particularly in working out the implications of the welfare and benefit changes.
On enterprise, Mr Osborne did state explicitly the Government’s view that SMEs were fundamental to economic recovery. Specific measures I noticed included:
- a review of employment law to be undertaken
- employee NI thresholds increased by £21.
- temporary increase in small business rate relief
- central government tenders to go on-line, free
- EFG increased by £200m to 31/3/11
- and a 20 business day turnaround on applications
- a Green Paper on business finance in the summer
- an exemption of £5000 NI for each of ten employees for 3 years for new businesses started in the NW, NE, Yorkshire, East and West Midlands and the South West.
- a Regional Growth Fund to “support increases in business employment and growth”.
- RDAs to be abolished and replaced by LEPs-”particularly those based around England’s major cities and other natural economic areas.”
- focus on transport, housing, skills regeneration and other areas of economic development
- incentives for local authorities to support growth.
So confirmation that RDAs will go, but we shall have to wait and see what replaces them, and when. I was disappointed to see no specific reference to business support; I suspect we will have to wait for clarity on that. In the meantime we are continuing to argue strongly - and the case needs to be made - that a start-up service needs government support.
In summary: a radical Budget which will take time to fully understand. Some positive individual measures to help SMEs and the regions (click here for an interactive map). But we shall have to see how the specific measures to help small businesses play out against the context of the wider impacts on the economy.