The headline announcements in the 2013 budget were:
- Corporation tax cut by one per cent to 20 per cent from 2015 – the chancellor said he will have achieved the largest cut in corporation tax in a single parliament in history.
- Additional help for small businesses seeking credit – In addition to continuing the Funding for Lending Scheme, the chancellor announced the publication of the first strategy for the Business Bank and confirmed that it will deploy £1bn of new capital.
- A second phase of the red tape challenge will be launched shortly – the second phase will look at the whole regulatory system, focusing on business activities where negotiating the system is particularly complex.
- New measures to support the housing market – A new help-to-buy scheme will be introduced. If you put down a 5 per cent deposit, the government will offer a 20 per cent loan and a mortgage guarantee will help lenders provide loans to people without deposits.
- Increased investment in capital projects – Whitehall spending cuts will reach £3bn (not the £2.5bn predicted), and will be reinvested in a capital expenditure programme aimed at roads, railways and broadband connectivity.
- Employers' national insurance will be cut from April next year – new employer allowance announced.
- Tax avoidance measures – the UK's first General Anti-Avoidance Rule will be introduced; the government will shortly consult on new proposals to 'name and shame' the promoters of tax avoidance schemes, intending to tackle both the supply and demand of these schemes.