UK budget cuts corporation tax, hikes borrowing and knocks penny off a pint
22 March 2013
Posted by: Herman van Dyk
By Colm Kelpie (Irish Independent)
UK Chancellor Osborne took aim at Ireland by slashing the corporate tax rate from 21pc
next year to 20pc by 2015. The annual budget deficit had fallen from 11.2pc of GDP in 2009-10
to around 7.4pc this year.
UK CHANCELLOR George Osborne has warned that the UK
economy will grow half as fast as expected this year as he admitted
recovery was taking longer than hoped.
And he turned to the Bank of England to help boost the fragile
economy, stating it may have to use "unconventional monetary policy
instruments" as he unveiled the budget to a rowdy House of Commons. That
is likely to push down the value of the pound still further, making it
harder for Irish exporters to the UK.
The Conservative Party
chancellor said gross domestic product will grow by just 0.6pc, down
from the 1.2pc projected in December. Next year will see growth of
1.8pc, down from the 2pc predicted in the government's autumn statement.
sluggish growth figures mean borrowing will be higher than expected,
making the target for slashing the deficit set by the government much
But the chancellor also unveiled measures to boost investment, including £3bn on infrastructure spending.
also took aim at Ireland by slashing the corporate tax rate from 21pc
next year to 20pc by 2015, following on from a 10pc rate on profits from
patents due to come in next month.
Mr Osborne said the measures would make the UK "one of the most internationally attractive places to innovate."
"This is a Budget that doesn't duck our nation's problems," Mr Osborne said.
confronts them head on. It is a Budget for an aspiration nation. It is a
Budget for a Britain that wants to be prosperous, solvent and free."
chancellor predicted that the deficit would continue to come down
thanks to the "many tough decisions" taken by the government.
said the annual budget deficit had fallen from 11.2pc of GDP in 2009-10
to around 7.4pc this year – a fall of a third. He predicted it would
reach 2.2pc by 2017 or 2018.