The Queen’s Speech today confirmed key legislation announced in the 2013 Budget.
Chas Roy-Chowdhury, head of tax at ACCA says: 'The 2013 Budget was explicit about the reforms needed to create economic growth, and to help businesses create jobs. For instance, in 2015, we will see the UK take on a corporation tax rate which will be one of the lowest in Europe, and the G20, at 20 per cent, from its current rate of 23 per cent. This will be a boost to business.
'The Queen’s Speech also mentioned the Government’s commitment to cutting excessive regulation on businesses, reducing red tape across a wide swathe of business regulations. Their policy of ‘1 in 2 out’, where if one policy is introduced, two are cut is a canny way to cut unnecessary regulation and ensure relevance. Diminishing the impact of regulation on business is important.
'We also welcome the change in National Insurance Contributions (NICs), announced in the Budget this year. This employment allowance cuts the first £2,000 from the employer’s bill. This is clearly a saving for business, large and small.'
ACCA also comments today on the Government’s commitment to the introduction of a flat-rate state pension of £144 in today’s prices.
Chas Roy-Chowdhury adds: 'This announcement is a positive encouragement to long-term saving. The reform will have the advantage of bringing greater clarity for all about the level of state support they can expect when they retire.
'Those individuals who have the resources to invest in supplementary pensions can then make the decision to do so if they wish. Another benefit of the reform is that the replacement of the complicated system of means-testing, which currently governs award of the pensions credit, will help ensure that everyone who is entitled to state support actually receives it.'