Reaction to UK Chancellor Alistair Darling’s pre-budget report this week has been largely positive, as he looks to turn around an economy that is still ailing under difficult conditions.
Darling has predicted between one and 1.5 per cent growth for 2010, in line with his previous budget announcement. For 2011 to 2012 he has predicted growth of 3.5 per cent, in line with the Bank of England predictions.
Inflation is predicted to reach 3.5 per cent before deflating to 1.5 per cent by the end of 2010.
The one per cent increase in small business corporation tax has been postponed to support small and medium enterprises. The postponed increase means a freeze in the corporation tax at 21 per cent.
The Chancellor also announced that he will extend the Enterprise Finance Guarantee Scheme for a further 12 months, supporting a further £500 million in small business loans.
The National Farmers’ Union (NFU) has expressed relief that agricultural property has not had its exemption from inheritance tax removed.
The NFU had lobbied vigorously to protect the relief in recent weeks following rumours that it may be reduced or even scrapped.
The NFU also approved the extension of empty property relief, which brings benefits for diversified farming businesses hit by the recession. However, it expressed its dismay at the decision to further increase employer National Insurance contributions, which will further raise the cost of employment in the farming sector and undermine business competitiveness.
NFU president Peter Kendall said: “We have said that a vibrant and productive farming sector depends, in part, on a tax system that stimulates investment and innovation while also encouraging farmers to take a long-term view of their businesses.
“This pre-budget statement talks long about investment but falls short of the mark when it comes to delivering the fiscal measures that would really stimulate investment on farming businesses. As agriculture takes a long-term view of its future, facing up to the challenge of feeding a growing global population while impacting less on the environment, we also need a long-term vision from the Treasury.”
Richard Watts of the Children's Food Campaign said of the decision to extended the eligibility of children for free school meals: "This announcement will mean more children get access to good food at school, which will improve their health, ability to learn and behaviour in the classroom. Families on low income will really welcome this extra help."
"We believe that introducing universal free school meals is the most cost-effective and least bureaucratic way of ensuring all children eat well at school. The trials of free school meals for all seem to be very effective and we believe this policy should be introduced nationwide."
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