BBA welcomes tax cuts

British Bankers Association welcomes cuts to personal and business taxes.

Following the Budget Income Tax was slashed from 22p to 20p and Corporation Tax Rate for small companies rose from 19% to 22% from April 2008.

Angela Knight, chief executive of BBA, says: The chancellor has announced a significant number of tax changes and we need to consider when we have had time to assess all the details whether this is unalloyed good news or not.

I am afraid once the dust settles we will see the chancellor giving with one hand and taking away with the other.

The cut to personal taxation is welcomed but this is likely to be offset by changes to allowances and national insurance.

However, the 600 increase in the cash element of an ISA is welcome because it will allow people to think more carefully about saving.

The BBA also congratulates the chancellor on his commitment to green mortgages and their role in helping customers reduce the impact on the environment.

I know that some of our members are already developing products that meet this growing market demand.