The Budget Report 2010 for the South East has been released, with the Government’s objective to build a strong economy and a fair society where there is opportunity and security for all.
It reports on how the Government will be delivering support to business and households to build strong, sustainable, growth whilst protecting the frontline services that people in the South East rely on. The Government is acting to ensure sound public finances to provide a stable platform for growth and maintain macroeconomic stability.
These measures include:
Supporting Business and Growth
Budget 2010 announces measures to strengthen regional, sub-regional and local capability to support growth and inclusion, including:
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- Temporary increase in the rate of small business rate relief to benefit over half a million eligible small businesses in England.
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- A National Growth Capital Fund with a regional presence to ensure SMEs across the South East access the finance it will provide.
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- An increase in the threshold of the Annual Investment Allowance from £50,000 to £100,000. This will benefit particularly the manufacturing, transport/storage and construction sectors.
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- HMRC will continue to offer the Time To Pay scheme: 45,100 arrangements in the region allow businesses more time to pay tax.
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- Collocation of RDA, HCA and Government Office to simplify the regional tier
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- £120 million to fund Accelerated Development Zone pilots in centres of growth, including combined authorities, in 2011-12.
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- A £100m fund to repair local roads following the bad weather, and;
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- An enhanced role for regional ministers (RM) to act as a champion for growth, inclusion and public sector reform in their region.
Achieving Fairness and Providing Opportunity
Budget announces an additional payment alongside this year’s Winter Fuel Payment, worth £100 for households with someone aged 80 or more and £50 for households with someone over female State Pension Age. 320,000 of the 1,290,000 households in the South East which received a Winter Fuel Payment contain someone aged 80 or over.
Budget announces that the first Saving Gateway accounts will be available in July 2010, offering people the chance to receive 50p from the Government for each £1 they save. 789,000 people expected to benefit in the South East.
The Government is providing continued support to homeowners by freezing the interest rate used to calculate Support for Mortgage Interest (SMI) payments at 6.08% for a further 6 months, until December 2010. Based on the most recent available regional data, the number expected to benefit in South East is 21,300.
Protecting Public Services
The national report of Total Place, published the day after Budget, announces significant freedoms for local public services to deliver better outcomes and greater savings.
Kent have indicated that revenue savings of up to 10 per cent per annum may be possible from reducing the running costs of the public sector estate. Further specific work with Kent to take forward the pilots’ findings in extended field trials will include exploring a range of options to drive greater value from the local public sector estate, including development of local property vehicles.
Tackling Climate Change
Budget 2010 announces £60 million for infrastructure development, to meet the needs of offshore wind turbine manufacturers looking to locate new facilities in the UK. The wind energy industry employs around 13,100 people in the South East.
This Budget also announces the Government’s intention to create a Green Investment Bank which will be UK wide, supported by up to £1 billion from the sale of infrastructure-related assets to boost investment in major low-carbon infrastructure projects. This will potentially benefit projects in the South East, including renewable energy.
Liam Byrne, Chief Secretary to the Treasury said
“This is a Budget about opportunity, not austerity. It will continue to support businesses and families, while bringing down borrowing in a way that doesn’t damage the recovery or frontline services.
“The challenge for Britain is how we invest as a country to support the industries of the future – we will drive future growth in the South East by offering help for small business, promoting innovation, and investing in infrastructure and key skills.”
Jonathan Shaw, Regional Minister for the South East, said
“The Government announced a set of targeted interventions that will help businesses of the South East recover quicker and stronger. The Budget report also maintains previous announcements to halve the deficit over 4 years whilst protecting frontline public services which means the people of the South East will continue to receive the public services they need.”
Source: HM Treasury: www.hm-treasury.gov.uk
HM Revenue & Customs: www.hmrc.gov.uk
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