Print welcomes Osborne's NIC and Corporation Tax cuts

A reduction in employers National Insurance Contributions (NICs) and a further reduction in Corporation Tax were among the few highlights of yesterday's Budget for printers.

In a surprise move, the chancellor announced a £2,000 reduction in employer NICs from April 2014 together with a further 1% reduction in the rate of Corporation Tax, which will fall to 21% next month and then to 20% in April 2014.

Astron founder and former Bezier chairman, David Mitchell, one of UK print’s most successful entrepreneurs, welcomed the cut in employer NICs as virtually the sole bright point in an otherwise confused Budget.

"It’s good news re Employers National Insurance, which is a tax on jobs, but there is no sense of political leadership or direction and until that comes then it is more of the same I'm afraid," said Mitchell.

"Borrowing is now £356bn more than we were told we would have two years ago and we are losing both ways, because the cuts in non-value adding public sector seem a spit in the ocean compared to the growth in national debt.

"We need bold decisive leadership now, not a penny off a pint of beer; we need focus on getting things moving - upset some sections of society if necessary; build the third runway, build the next generation of power stations, but do something."

Fellow entrepreneur and chief executive of Printing.com Tony Rafferty also welcome the cut in employer NICs, which he called a "good move" by the chancellor.

"For UK plc to succeed, which is exactly what our sector needs, start ups need to move on and take the 'second' step. That means employing some one," said Rafferty.

"Helping businesses to move on from being a 'sole trader' to an employer is something that should be incentivised."

Rafferty also welcomed the further 1% cut in Corporation Tax, which means the coalition will have cut the 28% rate of tax inherited from Labour by more than a quarter come April 2014.

"Three years ago the progressive cuts to Corporation Tax persuaded Printing.com to develop its TemplateCloud and W3P software platform in the UK," he said. "Now we're generating revenue from three continents and adding to UK hi-tech job creation. Today's rate cut adds to the attractiveness of basing technology or knowledge-based businesses in UK."

Meanwhile, Gerry Hoare, founder of print finance broker Deal Bureau, highlighted the Business Bank as one possible boon for printers looking to borrow although he added that he was "very sceptical about how and who will run it".

"If a retail bank has turned a borrowing request down, with all the experience and knowledge of the customer, why would the government bank want to do it," reasoned Hoare.

He also welcomed the continued freeze on fuel duty, which is now 13p per litre cheaper than it would have been under the previous government’s fuel duty escalator, as well the cut to Corporation Tax, but added that there was not much to shout about from a print perspective.

"Most of this is tinkering really, the numbers look great and the words are saying the right things. However, the key is businesses being able to build profit reserves and invest in their businesses. Aside from the fuel duty, corporation tax and some personal tax changes, there isn’t a lot here for the sector," he concluded.

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