Mr Osborne said the government is going to make the UK the "best place in Europe" to start, finance and grow a business as he announced a range of measures to boost investment in UK companies.
As well as lowering corporation tax rates, a package of reforms were introduced for enterprise investment schemes (EIS) and real estate investment trusts (Reits) were made easier to set up and more accessible to investors.
In addition, the government announced that it will introduce a carbon price floor for electricity generation from 1 April 2013 to drive investment in the low carbon power sector.
The carbon price floor will start at around £16 per tonne of carbon dioxide and follow a linear path to £30 per tonne in 2020 to drive investment in the low-carbon power sector. The carbon price support rates for 2013-14 will be equivalent to £4.94 per tonne of carbon dioxide.
The government also announces that the initial capitalisation of the Green Investment Bank (GIB) will be £3bn and that it will start operation in 2012-13, a year earlier than previously anticipated.
Government investment alongside private finance should mean that there is in the region of an additional £18bn of investment in green infrastructure by 2014-15 as a result of the GIB.
The Spending Review allocated £1bn for the GIB and the government is aiming for the remaining £2bn to be funded from the sale of assets.
The government will enable the GIB to have borrowing powers from 2015-16 and once the target for debt to be falling as a percentage of GDP has been met. Source www.ftadviser.com For the latest updates PRESS CTR + D or visit Stock Market news Today
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