Extra funds for the Get Britain Building Fund and new financing and simplified taxes for small companies were among the measures announced by the chancellor in today’s Budget.

April’s cut in Corporation Tax has also been doubled to 2%, though there are no new measures regarding fuel duty and no VAT help for domestic repair, maintenance and improvement work desperately desired by the construction industry.

British Woodworking Federation chief executive Iain McIlwee described the budget as “jam tomorrow” and not really the “shot-in-the-arm” that the construction sector needed.

He welcomed the commitment to business, including the reduction in Corporation Tax, new financing, simplified taxes and extra funding for the Get Britain Building Fund.

But he expressed disappointment at the lack of measures to address rising fuel costs and an absence of stimulation for the repair, maintenance and improvement market.

The Construction Products Association (CPA) welcomed the budget’s help for businesses but said it would give no short-term help for the construction industry.

“We welcome the direction of travel set by this Budget, and the various announcements to support housing, rail investment, and development,” said CPA chief executive Michael Ankers.

“But construction is facing a very difficult 12-18 months and these will not do much to change this.”

While the headlines will concentrate on cutting the top 50p income tax rate to 45p and raising personal income tax allowances by £1,100 to £9,250 from April 2013, chancellor George Osborne said the Budget “unashamedly” backed business.

The government is increasing the Get Britain Building Fund by £150m to help deliver more than 3,000 homes. This is on top of the £420m existing funding intended to deliver more than 12,000 new homes by supporting construction firms in need of development finance.

The chancellor said the National Loan Guarantee Scheme, which started yesterday, saw Barclays, Lloyds TSB, RBS Santander and new business bank Aldermore sign up to the scheme, whereby the government will guarantee £20bn of loans for SMEs.

Consultation is being launched on simplifying the tax system for small firms with a turnover of up to £77,000, while Corporation Tax is being cut to 24% next month and by 2014 it will fall to 22%.

The government is also looking at reducing the administrative cost on companies of the Carbon Reduction Commitment and is considering an alternative environment tax.

The chancellor said there were no “Budget give-aways” and the government was committed to fiscal responsibility.

Meanwhile, the Office for Budget Responsibility has forecast that the UK will avoid a recession in the first quarter, with growth expected to be 0.8% in 2012.

For more Budget reaction see the next issue of TTJ