Darling Delights Online Retailers
09 April 2010 - 09:03 by Paul Tissington
At the recent budget announcement, chancellor Alistair Darling's plans for this year's budget may have brought dismay to cider drinkers everywhere, but the government's budget was a positive thing for many in the online retail community, who welcomed a particular part of the budget: namely the cut in business rates.
As part of this year's budget, the chancellor announced that there will be a reduction in business rates, starting in October of this year and affecting around half a million firms including many who provide goods for safe shopping online. Meanwhile, the annual business investment allowance will increase from £50,000 to £100,000. In addition, online entrepreneurs will be pleased to hear that the relief on CGT will increase from one million pounds to two million pounds. The news will aid many online retailers who are just starting off in the sector and are therefore small businesses or indeed established firms trying to grow their businesses online.
Clare Gilmartin, the managing director of auction website eBay in the UK, applauded the move to cut business rates and praised the government for helping online retailers. Gilmartin said that the cut was something many in the sector would want and that many online retailers have called out for such a move, according to research eBay has conducted into online businesses.
Gilmartin believes that the reduction will further help online retailers provide safe shopping online and that now is a good time to make a reduction, as the cut in business rates will provide a boost to the economy at a time when the nation is recovering from the economic downturn. According to Gilmartin, it is essential to support online retailers at the present time as these e-retailers are vital in driving economic recovery in the retail sector. The cut in business rates is also deemed to be useful to e-businesses across the board.