How Will the New Emergency Budget Effect SEO in London?

dfret webandrak.thumbnail How Will the New Emergency Budget Effect SEO in London?Conservative governments have traditionally favoured business, but will the new budget under a Lib-Con coalition see a return to Thatcherism. London based SEO companies will be waiting to hear if the new budget will help business, if it does we may see a growth of online businesses in the UK. The SEO companies will be looking to help market these businesses online.

However, with fears over a double dip recession will the UK be able to survive huge cuts; we can take a look at who wins and who loses in the UK’s emergency budget.

Here are some of the important decisions:


VAT to rise from 17.5% to 20%.
Income tax will be adjusted so basic-rate taxpayers will pay up to £170 a year less.
Low and middle-income earners will continue to pay Capital Gains Tax (CGT) at 18% but higher income taxpayers will pay 28% CGT.
The 10% CGT rate for entrepreneurs will be extended from the first £2m of qualifying gains to £5m.

State Benefits

Child benefit to be frozen.
Housing benefit restricted amongst other state benefits.


The threshold for employers to start paying National Insurance will rise.
Corporation tax will be cut and decrease further over the next 3 years.
Small companies’ will pay less tax too.
An easy to read run down of the budget can be viewed here ( or view the whole report here (

With every business owner in London fixed to the TV waiting for the new budget what are some of their immediate reactions.

The PLC Boss, Steve Spring, seems sceptical about the new changes fearing that the new increase in VAT will effect the poorest. He is also worried about funding for local statutory services getting slashed. Spring, is hopeful that the lowering in corporate tax will encourage growth and help the private sector to pick up the slack. The Chancellor is copying what private-sector CEOs have been doing for the last two years – control capital expenditure but investing in product development. I wonder which cap-ex projects he is ring-fencing.

Jonathan Keeling speaking on behalf of The Stockbroker, is much more up-beat about the new changes. He sees this as good news for all those working in the City. The tax on banks has received international support from France and Germany. Keeling, comments that there are no other taxes on financial service companies which should help growth. Corporation tax is set to become the lowest in the G20 hopefully making London attractive to overseas entrepreneurs. This budget can re-strengthen the pound.

An independent entrepreneur is worried that the hike in VAT will mean that the consumer will have less money in their pockets. Small business owners should be positive about 2011-2012, the country just needs to be confident moving forward into a brighter economic future, SEO firm can mean the difference in the city today.