By Jessica Frank-Keyes
Small and medium sized enterprises (SMEs) are set to hold on to the 19 per cent rate of company tax amid concerns for the future of the UK’s tech sector, the Mail has reported.
Chancellor Jeremy Hunt will hand small and medium businesses major tax breaks to boost investment in the spring statement this week, according to the newspaper.
It comes amid growing fears for the UK tech and life sciences sectors after the collapse this weekend of Silicon Valley Bank UK.
More than 200 tech firms wrote to the chancellor urging him to intervene, and ministers have been locked in talks with firms and the Bank of England ahead of a decision on any support.
Ahead of Wednesday’s budget, the Treasury has confirmed ending the prepayment energy meter penalty and boosting childcare support are among measures set to be unveiled.
Now the Mail says investment allowances for new plant and equipment spending are to be quadrupled from £250,000 a year to £1m.
While the move to hike corporation tax for firms earning above £250,000 to 25 per cent will go ahead, despite vigorous opposition from Tory rightwingers clamouring it will stifle growth.
It comes after prime minister Rishi Sunak and technology secretary Michelle Donelan unveiled plans for £370m in investment to cement the UK as a science and tech superpower by 2030.
A Treasury spokesperson said the department could not comment on budget speculation.
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