Chancellor Gordon Brown announced his budget yesterday, increasing the tax on a pint of beer and glass of wine by a penny, in line with inflation.

Brown also announced plans to double the level of Venture Capital Trust (VCT) tax relief, for investment in small companies.

The chancellor is encouraging investment in unquoted and start-up companies, as the level of relief offered to VCTs will increase from 20p to 40p for every pound.

The government’s help for small businesses wishing to expand does not end there. There will also be an increase in the investment allowances for the smallest businesses.

In his speech to the House of Commons, the chancellor said: “I will, initially for one year, increase the investment allowances from 40 per cent to 50 per cent for the smallest companies. So, overall, a company making pre-tax profits of £25,000 and investing £10,000 back in its facilities and machinery, will pay almost £3,000 less tax now than it did in 1997.”

The increase in tax on alcohol excludes spirits and sparkling wine, cutting the tax disparity between wine and sparkling wine – which is a permanent thorn in the side of the Wine and Spirit Association – to 42p. Details: www.hm-treasury.gov.uk