What You Should Know About the 2018 Budget’s Effect on M&A
Chancellor Philip Hammond this week announced the 2018 Budget, the last one before the UK leaves the EU. As negotiations continue over a Brexit deal, uncertainty surrounds the UK economy but Hammond appeared confident that a good deal will be secured and that austerity is coming to an end.
In the context of business, the Budget was largely positive – for example, rates for small businesses are to be cut, there will be a temporary increase in the annual investment allowance from £200,000 to £1m, and start-up loan funding is to be extended to 2021. As well, new enterprise allowance is to be extended for benefits claimants to help get their businesses off the ground.
Negatively affected by the budget are tech giants such as Google and Facebook with the announced introduction of a Digital Service Tax but, overall, the Budget is promising for SMEs and start-ups
But is the Budget equally pleasing for M&A?