Following the Olympics the Department for Culture Media and Sport was always going to see a reduction in its budget. The Chancellor has also asked departments for a further saving of 1% on their budgets for the next two years on what was originally planned.
The impact of this in real terms is that the DCMS budget will fall from £1.9bn this year to £1.2bn next year and £1.1bn in 2014/15.
Exactly how this will be achieved will be set out in the spending review to take place on 26th June.
The areas that might impact on sport and football are:
In the 2012 Budget the Chancellor announced that Corporation Tax would fall to 22% in 2014. The Budget has revised those figures so that they will fall to 21% in 2014 and 20% in 2015.
There will also be some simplification of the Corporation Tax system so that by 2015 everyone is paying tax at the 20% rate.
Alcohol duty is subject to what is known as a duty escalator which means duty rises at 2% above inflation year on year. The Chancellor has now scrapped that escalator on beer only and announced a cut on 1p on beer to take effect on Sunday 24th March.
Duty rises for wine, cider and spirits will remain in place.
The Budget announces tax relief on the first £2,000 of a company’s National Insurance Contributions. This measure is designed to help small business and will come in to effect in April 2014. It has been called the “Employment Allowance” by the Government.
The Government has entered into agreements with the Isle of Man, Jersey and Guernsey to exchange tax information. The Treasury predict that this is likely to help cut tax avoidance by businesses based in those countries. Measures will be introduced in the 2013 Finance Bill and are likely to take effect in the coming months. This information will also apply to past tax affairs.
Tax relief for investing in social enterprise
The Government will introduce a new tax allowance for businesses investing in social enterprises. There aren’t many details on this available other than the Government will begin a consultation on the proposals by the summer.