Budget could prove 'helpful' to regional agencies, says Ptarmigan Bell Pottinger MD
Nathan Lane, managing director of Ptarmigan Bell Pottinger has described the budget delivered today by George Osbourne as being one that maybe 'helpful' for regional agencies.
Chancellor George Osbourne has announced that he has reduced the forecast for growth for 2011 to 1.7%, and that inflation is likely to be between 4% and 5%.
In today's budget, Osbourne said that the impact upon the economy in the final months of last year had meant that he had to lower the forecast, but had said that the forecast for 2012 is 2.5%. This will rise to 2.9% in 2013 and 2014, falling to 2.8% in 2015.
Inflation is also expected to fall to 2.5% next year and fall again to 2% in 2013, while Corporation tax also set to fall to 1%.
Other measures announced included a reduction in fuel duty by 1p while 40,000 extra apprenticeships will be funded for young people.
The small business rate relief holiday is being extended by one year to October 2012, at a cost of £370m, while freezing alcohol duties and air duty and increasing tobacco tax by 2%.
Plans to set up Enterprise Zones in some the most deprived areas of England have also been extended from 10 areas to 21. These areas will benefit from relaxed planning laws and discounted business rates, with the aim of encouraging job creation.
£250m will also be invested to help 10,000 first-time homebuyers purchase newly built flats and houses in England.
Twenty-four new university technical colleges will be funded, and the creation of 100,000 places in a new work experience scheme over the next few years.
Increased tax breaks for research by small companies have also been announced.
"It was a busy budget for a chancellor with less wiggle room than Houdini. The enterprise zones, IP protection and incentives for angel investors should prove helpful for regional agencies," explained Lane.
"We can welcome a more competitive tax system and support in developing young talent. The gordian knot of the UK housing market will need to be solved if we are to see consumer confidence surge.
"The first time buyer measures are welcome but a drop in the ocean.
"As always the devil will be in the detail but a comment I heard last week in regards to Local Enterprise Partnerships rang in my ears throughout this budget 'We have to wean ourselves off the belief that government money can solve our problems. There isn't any and we have to look to ourselves to affect change," concluded Lane.