Chancellor Darling Brings Hope for SMEs
Business do not always start out big, in fact, they tend to start small, very small. Benefits such as subsidies, incentives and tax breaks goes a long way when it comes to helping small and medium enterprises (SMEs) get past the first few years of operation.
With the elections coming soon, Chancellor Alistair Darling hits several important points in the budget delivery that is certain to earn him much needed support. He outlined several points regarding the borrowing of funds and government investments, as well as some key points with the expansion of broadband services.
The Chancellor also announced the need to start the UK New Fund for Growth, which aims to provide a considerable degree of financial aid to SMEs. It is estimated that the New Fund for Growth would reach up to £500 million. A massive tax reduction and exclusion deal will affect the tax rates for over 500 thousand business –of which, 345 thousand would be exempt from paying taxes for a duration of time.
For the mobile phone industry, none of these announcements will be more significant than the push for tax breaks for video game developers. As many apps are actually games (more than 40% of app store programs are games), many developers would qualify for this much needed tax break. This will not only help expand major development studios, but also smaller startup groups that are still making their name on the scene.
Having tax breaks provide help to both local businesses and in attracting more professionals to start up shop here. The UK has slowly dropped from third to fifth place in the top game developing countries in the world –as countries such as Canada start offering incentives to studios, many are discouraging from investing within the UK. This tax break should help change that situation and possibly, open up new jobs.
Get to know more about Chancellor Alistair’s budget delivery at Mobile Today UK.
Tags: Alistair-Darling, apps, Fund-for-Growth
