Overview
Business investment will be £113bn this year, expected to grow 4.5 per cent to 5.25 per cent a year in 2007 and 2008. Productivity growth averaging 2.3 per cent in current economic cycle, against 2 per cent in the previous cycle.
Taxation
The size of companies that can claim higher tax credits for research and development is to be doubled. Tax credit for creative industries will be expanded. Tax incentives for venture
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capital to be reduced to 30 per cent relief for investments in venture capital trusts. Corporate tax to remain competitive with international rates. Small companies to get £100m of new money. Scholarships to US business schools.
Trade
UK trade and investment procedures to be overhauled with targets to expand trade with China, India and emerging economies.
Article date: May 2006 |
