The Chancellor announced his Budget on 21 March 2013. A number of points in the Budget are of particular interest to Credit Unions:
- Insolvency– Government announce plans to consult on introducing insolvency procedures for Credit Unions.
- Corporation Tax– Corporation tax rate for large companies (including Credit Unions meeting the size criteria) to be cut to 21% in April 2014 and by a further one per cent to 20% in April 2015. The Government will also aim to unify the small profits rate and the main rate to create a single rate of corporation tax.
- National Insurance– A new Employment Allowance from April 2014, taking £2,000 off the National Insurance contributions bill for every employer. It is estimated that 450,000 of the UK’s smallest businesses will no longer pay employer NICs.
Some announcements that will impact on the products that some Credit Unions offer:
- Junior ISAs and Child Trust Funds- The Government will consult on options for transferring savings held in Child Trust Funds into Junior ISAs.
- Mortgages– George Osbourne announced ‘help to buy’ scheme to assist those struggling to find mortgage deposits.
The main impact for Credit Unions, however, will be the effect the budget has on the economy and the consequential impact on members and their funds. The Government’s growth forecast for 2013 has been halved to 0.6% and 2013/14 is likely to be another tough year for the country.
For further information on the Budget please see http://www.alexandersloan.co.uk/business-news-0