The Chancellor has announced an additional £2bn on top of the existing pledge of £1bn for the new Green Investment Bank and it will become operational in 2012, a year earlier than anticipated.

The intention is to catalyse investment in carbon emissions-cutting technologies such as wind power and to do this it will be able to borrow from 2015-16.

The objective is to encourage consumers to move from fossil fuels to clean energy in order to meet European Union climate change targets.

In a separate measure, George Osborne set a minimum price for power producers for emitting carbon dioxide at £16 per metric tonne with effect from April, 2013, rising to £30 in 2020.

Relevant to small businesses is the increase of the company car tax rates by 1% for 2013/14 for vehicles with CO2 emissions between 95gms and 220gms per kilometre.

Also important is the fuel benefit charge multiplier in calculating the tax payable on fuel provided by employers for company cars will increase from £18,000 to £18,800 with effect from April 6, 2011.

As an incentive to those using their own cars for business use the approved mileage rates will increase from £0.40 per mile to £0.45 per mile for the first 10,000 miles.

• A summary of Budget measures is at www.burgesshodgson.co.uk

Burgess Hodgson Chartered Accountants

Camburgh House, 27 New Dover Road, Canterbury, Kent CT1 3DN

01227 454627

kcm@burgesshodgson.co.uk

www.burgesshodgson.co.uk