Budget 2014 – Key Points for Higher Education & Business

Higher Education and Export

In recognition to the £10 billion contribution of international students to the UK’s economy and the important role of HE, the government will triple the number of Chevening Scholarships from 2015-16

Expand of the ‘Education is GREAT’ campaign to help attract more international students to the UK, and build on its reputation as a world-leading place to study.

Double the funding and ambition of UKTI’s Global Entrepreneur Programme.

  The UK Export Finance’s (UKEF) direct lending programme will be overhauled, doubling it to £3 billion and cutting interest rates to the lowest permitted levels
•         More proactive support for UK business who want to expand globally,
•         Increased marketing so that more businesses are aware of UKEF’s products and services

Apprentices

Apprenticeship Grant extended 2015-16 with the aim to provide another 100,000 apprentices £20m to support closer ties between apprentices and higher education

The Apprenticeship Grants for Employers (AGE) scheme will be provided with an extra £85 million in both 2014-15 and 2015-16 for over 100,000 grants to employers

The government will also provide £20 million over 2 years to support apprenticeships up to postgraduate level

Business

Corporation tax will fall to 21% in April 2014 and to 20% in April 2015

Introduction of the £2,000 Employment Allowance in April 2014 will support businesses to grow and create jobs, and take 450,000 employers out of employer National Insurance Contributions

The annual investment allowance (AIA) for businesses will be doubled to £500,000 from April 2014 until the end of 2015 – of particular benefit to small and medium firms, outside of London and the South East and in the agriculture and manufacturing sectors – these businesses will receive 100% up-front relief on their qualifying investment in plant and machinery

The rate of the R&D tax credit payable to loss making small and medium sized companies will be increased from 11% to 14.5% from April 2014