The emergency budget unveiled by the UK government on Tuesday was unashamedly pro-business, giving British businesses everything they could have wanted. While the headlines have focused on the drastic cuts to public spending that the budget outlined, a more subtle trend was the way in which the tax burden has shifted from companies to individuals.
The key area affecting most businesses was the reduction in the main rate of corporation tax to 27 percent this year and then by a further 1 percent a year to 24 percent in 2013. This was accompanies by a cut to the small companies corporation tax rate to 20 percent. This was more generous than the 3 percent reduction to 27 percent that most were expecting.