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Mixed reactions to Chancellor George Osbourne's 2012 Budget

He announced his plans to “earn our way out” of trouble with measures including a cut in the top rate of income tax, cuts in corporation tax and increase in the personal tax allowance.

Speaking in the House of Commons today, Osbourne said that “this budget reaffirms our unwavering commitment to deal with Britain’s record debts.”

Reaction to the Budget’s impact on businesses has been mixed.

“The Government is very clear on the way forward with UK businesses being the key driver of UK economic growth,” said Charles Purdy, managing director of Smart Currency Exchange. “The focus of the Chancellor in today’s budget was to help businesses double exports to £1 trillion, help business to invest for the future by reducing corporation tax and also make available additional incentives for businesses to invest in technology and in deprived areas.”

However Stephen Robertson, director general of the British Retail Consortium, thought that the Chancellor could have done more to help businesses.

“It is very disappointing that the Chancellor has done nothing to scale back the impending 5.6% increase [in business rates], which will add £350m to retailers’ costs. Reducing corporation tax further and faster will make investment in the UK more attractive but it is not the only business tax that matters.

“An additional 1% reduction in corporation tax does not make up for a 5.6% increase in business rates,” he added.


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