Chancellor George Osborne has set out an array of business-friendly measures as he looks to the private sector to rejuvenate the nation's economy.
This sop to the business world, announced in today's Budget, includes exempting SMEs from new regulations and the creation of enterprise zones.
Osborne, delivering his Budget in a rowdy Commons, said supporting the private sector is central to the country's economic ambitions as he declared "Britain is open for business".
The Chancellor announced the small business rate relief holiday is being extended by one year to October 2012. This, he said, will cost of £370m.
He also announced a three year moratorium on domestic regulations for small business and start-ups.
As well as confirming SMEs will be exempt from new regulations, he also pledged a radical overhaul of planning rules and the creation of 21 new enterprise zones which will enjoy tax breaks.
A throw-back to the Thatcherite era, enterprise zones were a feature of the Conservative government in the 1980s.
The Chancellor also set out plans for private sector job creation in the regions.
In addition, Osborne unveiled a set of measures impacting larger businesses in an effort to make Britain more attractive to international businesses.
This included an overhaul of the controlled foreign companies (CFC) regime.
"We will fundamentally reform the complex rules for controlled foreign companies and make them more territorial," he said.
The Chancellor said he will introduce new rules which effectively apply an ultra-competitive 5.75% rate on overseas financing income. This, he said, would give the UK a "far more attractive system" than France, the US or Germany.
"I want Britain to be the place businesses go to and not leave," he said.
The Chancellors' policies are a clear move to try and halt the exodus of companies to low-tax regimes abroad. Recently, companies including HSBC have considered moving to more tax-friendly economies.
Last November, the Treasury issued a consultation document on CFCs as part of a wider five-year strategy paper.
The Chancellor added he wants Britain to have the most competitive tax system in the world, a more balanced economy which supports manufacturing and exports and more flexible working regulations.
Other pro-business measures include 40,000 extra apprenticeships for the unemployed young, a new work experience scheme and a boost for the science world with the roll-out of new investment facilities.
Speaking in the Commons just before the Budget, Prime Minister David Cameron said the Budget will set out a "whole series of measures to fire up the private sector".
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