Tax
breaks for businesses and help for working parents are among a package
of measures George Osborne will announce in a bid to inject growth into
Britain's ailing economy
Despite gloomy economic forecasts warning the UK is plunging back into recession, the Chancellor will insist the Government's tight spending controls have had "real benefits" for Britain, including bringing down debt interest repayments, saving the Treasury £20 billion over four years.
In his Autumn Statement on the economy, he will unveil a raft of reforms focusing on creating growth by targeting small businesses.
Under a seed enterprise investment scheme, investors supporting companies with fewer than 25 employees will be eligible for up to 50% income tax relief on the money they have ploughed in, capped at a maximum of £100,000 a year and a one-year capital gains tax holiday.
A £50 million fund for small business risk capital will be aimed at companies setting up in the areas worst affected by the public sector spending cuts. An existing business rate relief holiday will also be extended by six months, taking it to April 2013.
Mr Osborne is also expected to announce additional cash for free childcare for two-year-olds. Funding for the scheme will be increased to £380 million a year by 2014/15, doubling the number of places to 260,000.
It comes alongside the £30 billion investment programme in Britain's infrastructure, including new roads, railways and broadband links, announced today ahead of the statement.
The Chancellor will insist the Government is building the foundations for Britain's future at the same time as stabilising its finances when he delivers the statement to the Commons.
But the Organisation for Economic Co-operation and Development (OECD), a respected global economic think-tank, warned today that the UK has already entered a period of recession which will last until the spring and will be followed by months of stunted growth.
And Mr Osborne's statement will come against the gloomy backdrop of downgraded economic and fiscal forecasts from the independent Office for Budget Responsibility, which is expected to trim its estimate of 2011 GDP growth for the fourth time to around 1% - well below the 2.6% it predicted last year.
Despite gloomy economic forecasts warning the UK is plunging back into recession, the Chancellor will insist the Government's tight spending controls have had "real benefits" for Britain, including bringing down debt interest repayments, saving the Treasury £20 billion over four years.
In his Autumn Statement on the economy, he will unveil a raft of reforms focusing on creating growth by targeting small businesses.
Under a seed enterprise investment scheme, investors supporting companies with fewer than 25 employees will be eligible for up to 50% income tax relief on the money they have ploughed in, capped at a maximum of £100,000 a year and a one-year capital gains tax holiday.
A £50 million fund for small business risk capital will be aimed at companies setting up in the areas worst affected by the public sector spending cuts. An existing business rate relief holiday will also be extended by six months, taking it to April 2013.
Mr Osborne is also expected to announce additional cash for free childcare for two-year-olds. Funding for the scheme will be increased to £380 million a year by 2014/15, doubling the number of places to 260,000.
It comes alongside the £30 billion investment programme in Britain's infrastructure, including new roads, railways and broadband links, announced today ahead of the statement.
The Chancellor will insist the Government is building the foundations for Britain's future at the same time as stabilising its finances when he delivers the statement to the Commons.
But the Organisation for Economic Co-operation and Development (OECD), a respected global economic think-tank, warned today that the UK has already entered a period of recession which will last until the spring and will be followed by months of stunted growth.
And Mr Osborne's statement will come against the gloomy backdrop of downgraded economic and fiscal forecasts from the independent Office for Budget Responsibility, which is expected to trim its estimate of 2011 GDP growth for the fourth time to around 1% - well below the 2.6% it predicted last year.
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