Chancellor George Osborne has laid out business-friendly measures in his budget.

Total Back Office Solutions can give you recruitment agency formation advice

George Osborne, the chancellor of the exchequer, has presented his first Budget and laid out measures that could have a significant effect on those looking for recruitment agency formation advice

People who are looking into how to set up a recruitment company will be glad to hear that Mr Osborne confirmed that the Entrepreneurs Relief threshold will increase from £2 million to £5 million.

The chancellor also announced that the Small Companies Tax Rate will be reduced to 20 per cent and in the process benefit more than 850,000 small firms, although his decision to raise VAT to 20 per cent in January 2011 was not welcomed.

Reacting to the Budget, the Federation of Small Businesses welcomed many of the measures announced, but raised concerns over the VAT hike, saying it will hurt small businesses.

National chairman John Walker also welcomed the move to give a national insurance holiday to business start-ups, but added "with 70 per cent of firms operating below capacity, those businesses already trading will not be helped".