Corporation tax liabilities are going to increase as a result of Gordon's Browns announcements that the small companies' corporation tax rate is to increase. Some analysts have even suggested that small businesses will end up paying for the tax cuts that should benefit big business. This conclusion follows Gordon Brown's Budget speech today, in which he announced that corporation tax would be reduced to 28%, while the small companies' rate is to rise from 19% to 22% by 2009, a move that the British Chambers of Commerce described as "regrettable". Brown said that the increase was necessary to combat the problem of self employed people registering themselves as incorporated companies in order to pay less tax. However, one commentator said that smaller firms are likely to end up paying for the corporation tax cuts. "It was Brown that encouraged these self employed workers to incorporate themselves several years ago in order to pay less tax," he said. “And now he’s telling the very same people that they have to make up the shortfall." The Forum for Private Business called the Budget "smoke and mirrors", suggesting that Brown has tried to disguise the fact that there was "nothing in this Budget to support small businesses". There was some positive news however. Small firms will be able to claim 100% capital relief on all investments up to £50,000 and could benefit from 175% tax credit for research & development, which is to be extended to firms with less than 500 employees. This is fine for companies that actually work in R&D. One spokesman said "Tthe majority don’t, and companies that save in capital relief on investments up to £50,000 would, in the past, have been able to make the same saving on investments in IT of up to £100,000. So really, are they better off?" In some respects there was little in the Budget for SMEs. The Federation of Small Businesses said. "This is the Chancellor’s eleventh Budget and this year's offering is no different to the others. He gives with one hand and takes with the other," it said. "After some welcome initiatives for