Overview

The Chancellor sought to showcase his pre-election Budget by unveiling a commitment that RBS and Lloyds would provide £94 billion in new loans to businesses, with 50% going to small and medium-sized firms. He failed, however, to address the planned national insurance rises or the damage the bank payroll tax and higher income tax rates is causing to London as a financial centre. Other measures to be introduced like the doubling of the lifetime limit for entrepreneurs' relief to £2 million and increases in certain allowances again will help but don't go any way to offsetting the bleak economic picture.

This client alert takes you through the highlights of a Budget which contained very little of interest but did give an indication of those areas which may be hit by post-election tax rises if the government remains in power.

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