Increased Fuel Duty, Road Spending and Business Support in Pre-Election Budget
Alistair Darling’s last pre-election Budget has delivered a duty on fuel to be phased in between April and January 2011. The road network – the subject of much criticism following the appearance of more potholes than usual after the harsh winter season – will be subject of a £385 million investment.
In additional news, the chancellor stated that the economy contracted 6 per cent during the recession, while growth of between 1 and 1.25 per cent is predicted in 2010. 2011 predictions have been reduced to between 3 and 3.5 per cent as the recovery continues upwards. The government was also keen to extend help to small businesses, with £2.5 billion pledged to “boost skills and innovation” in small businesses. There will also be a one-year business rate cut starting in October, a doubling of the investment allowance for small firms (to £100,000) and of relief on capital gains tax for entrepreneurs.