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Has the Budget failed the IT industry?


Budget day came and went. So what did Gordon Brown offer the IT industry this year? Well perhaps it’s easier to list what wasn’t offered. There was no sign of a boost for broadband, no extra cash for e-government and minimal offering for IT investment. Not to mention the 1% increase in payroll tax!

The communications Managers Association described Brown’s Budget as “a great missed opportunity”. However, Brown did promise £420million for small companies to encourage their online filing, some changes to tax regime on intellectual property, which will benefit some software companies and more money for training.

However, Andy Humphreys director of Firs way Computer Services, a small IT and Networking company, stated “Gordon Brown has an almost schizophrenic attitude to small business....he has reduced the corporation tax rates for small business, while continuing to leave many of them uncertain whether they will pay tax under those rules or under a different set under IR35”.

Jim Haslam, vice-president of Soctim, the local authority IT directors’ organisation, said “This Budget is a blow to all those in local government trying to champion the benefits of e-government. It reinforces the increasing perception that central government fails to recognise the importance of its own e-government agenda”.


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