Business editor RON GODFREY finds out what the Budget means for the average person in York.

SMALL businesses are celebrating after promises of a much-needed rates cut, but have been warned: “It may not be as good as it looks.”

Traders protesting against rate revaluations in York, scheduled to come in next month, will hold a rally at Holy Trinity Church, in Micklegate, tonight fearful that the devil lies in the detail.

In his Budget speech yesterday, Chancellor Alistair Darling said that from October, businesses with a rateable value of less than £6,000 would pay no business rates for a year, while those with a rateable value of £6,000 to £12,000 will get a “substantial” discount.

Budget at a glance

• Duty on beer, wine and spirits to rise by two per cent. Tax on cider increased by ten per cent above inflation from midnight on Sunday.

• Tobacco duty up by one per cent above inflation this year, then two per cent.

• Tax on bankers’ bonuses raised £2 billion in 2009/10, twice as much as forecast.

• Guarantee that everyone will have access to a bank account, creating a million more bank customers.

• Work or training for all under-24s out of work for six months.

• Six more months of mortgage support for the unemployed.

• Stamp duty limit to double from £125,000 to £250,000, funded by an increase to five per cent on £1 million-plus homes.

• ISAs: Limit to rise from £7,200 to £10,200 and will increase thereafter annually in line with inflation.

• Debt expected to be £100 billion lower by 2013-14 than forecast.

• Deficit will be halved over four years.

• No further announcements on VAT, income tax or insurance.

• Inheritance tax threshold frozen for four years.

Denise Wilson, policy manager for the Yorkshire branch of the Federation of Small Businesses, said: “It is going to take 345,000 small businesses out of the system in England, and a number of them will be from our 2,700 members in North Yorkshire.”

But business rates protesters in York were less jubilant.

Paul Abbott, of Micklegate post office, who is organising tonight’s meeting, said: “There won’t be many small businesses in York that will qualify for a free year, particularly once the revaluation kicks in on October 1. “My own post office will go up in valuation from £6,900 to £9,000 – and it is a shoebox.”

He said few pubs would qualify for the discount and said they were particularly vulnerable, in light of the increase in alcohol duties.

“It will be devastating for them,” said Mr Abbott.

York MP Hugh Bayley said the measures were part of a £2.5 billion growth package for small businesses paid for out of a windfall tax on bank bonuses.

He said: “I made representations that it was wrong to bring in marginal increases in business rates because small businesses are still building back from the recession.”


Couple celebrate stamp duty windfall

A YOUNG couple looking to buy their first property in Ouseburn Avenue, York, were today celebrating an unexpected windfall from the Budget.

Chancellor Alistair Darling announced that the stamp duty threshold would be axed on homes worth under £250,000.

It meant that Natalie Brack, a deputy shop manager, and her boyfriend Sandesh Masih, a multi-media web designer, were both better off on the £162,995 asking price for the house by one per cent – or £1,629. “This gives us much more leeway on our budget to buy furniture for rooms we are going to change,” said Natalie.

Meawhile, an inward investment chief in York has called on the city council to redouble its efforts to attract thousands of civil service jobs which are to be dispersed from London.

Denise Stuart, chief executive of york-england.com described the Budget announcement by Chancellor Alistair Darling to move 15,000 posts out of London as “a fantastic opportunity.”

She said: “This could mean jobs for our people.

“When Defra moved to York in 2006, at least 60 of the 110 posts that arrived from London were vacant and occupied by local people.

“We have to redouble our efforts and be one step ahead of the competition from local authorities all over the UK.


The estate agent

Kevin Hollinrake, managing director and co-founder of York-based Hunters Property Group, said: “The scrapping of stamp duty for homes below £250,000 for first-time buyers is good news and something we have been calling for for a long time.

“They are the buyers for whom finding a deposit is the principal problem, and it means they are automatically a couple of thousand pounds better off. Stamp duty will increase for those buying at the high-end of the market, but they are the ones who can afford it so we don’t have too much of a problem with that. We hope this will stimulate interest in the market.”


The pensioner

John Hilton, chair of York Older People’s Assembly, said: “Older people keep up-to-date with what is going on in the world and are aware of the economic crisis, so I don’t think they expected huge handouts, even in a General Election year.

“Fuel poverty is a big issue and an extension of the higher winter fuel payments is a small step, but a welcome one, as is reducing the amount of time over-65s must work to receive work credits.

“But I’m slightly disappointed that, while we will shortly see Royal Assent for the Child Poverty Bill and quite rightly as it is extremely important, more is not being done to address pensioner poverty.”


The haulage company owner

Jon Prankitt, transport director at Stockton-on-the-Forest-based A Rhodes Haulage Ltd, said: “I wouldn’t say a 3p rise in fuel duty between now and next January is disastrous, but it certainly doesn’t help an industry which is struggling.

“We would have liked to have seen fuel duty frozen or even reduced, but in the current climate we couldn’t expect that to happen.

“The saving grace may be that it is a staged increase rather than all at once, but at the moment we are not far off the sort of fuel prices we saw last year and it seems to be sneaking in under the radar.”