UK Budget 2005 - Instant reaction
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Chancellor’s focus on skills welcomed
The business reaction was distinctly lukewarm, with relief at the absence of punishing new taxes tempered by a sense that the chancellor had missed an opportunity to bolster his rhetoric on boosting Britain’s competitiveness with concrete measures.
Cautious welcome for revamp of exports agency
The pledge by Gordon Brown that the agency charged with promoting British exports and inward investments will be “revamped” gained a very wary welcome from business.
Chancellor signals sell-off of UK energy assets
British Energy, the nuclear power generator rescued from collapse four years ago, is set to lead a new wave of government sell-offs, with a partial disposal of the state’s shareholding for an estimated £2bn.
Bid to cut £5bn business burden
Red tape in the tax system costs business about £5bn a year, the Treasury revealed, as it set targets to cut the regulatory burden imposed by Revenue & Customs.
City salivates at British Energy prospects
Gordon Brown’s comment on British Energy was a high-profile confirmation that a privatisation was being considered, and had the City quivering in expectation of a multi-billion-pound deal.
Property company shares boosted by Reits news
The Treasury has made it much easier for property companies to convert into real estate investment trusts, a type of tax-efficient property vehicle which will be introduced in January next year.
Tax relief for home computers scrapped
The chancellor has made a surprise U-turn, removing the tax relief underpinning the Home Computing Initiative that has helped millions of employees obtain cheap computers.
Plans to scale back PFI for ‘soft services’
The Treasury plans to apply a much stricter test of whether ‘soft services’ such as cleaning, security and ground maintenance be included in future PFI projects.
Experts unconvinced by productivity message
With output per worker growing at a 15-year low and output per hour rising at the slowest rate since records began in 1993, the chancellor might have been expected to sound a cautious note on productivity.
‘Green Budget’ hits business and gas-guzzlers
Greener fuels, energy-efficient cars and buildings, and small-scale renewable energy generation were at the centre of the chancellor’s focus on environmental issues in the budget.
