March 22 is the day of the Budget announcement. But what does the Chancellor have in store for Welsh businesses? Steve Theaker, tax specialist at Peacheys accountants and business advisors, takes a closer look at what we might be able to expect from this year's Budget Report...

It's worth noting that this year's Budget is likely to be Gordon Brown's last before he steps into Tony Blair's shoes.

It might be over-optimistic to expect vote-winning tactics all the way in the Chancellors' speech in an attempt to gather up public and parliamentary support, but we can but hope!

Brown's commitment to public spending means he needs to weigh up his options carefully and strike a balance between increased government borrowing or raising more tax revenue from individuals and businesses.

In last year's pre-Budget report, the Chancellor announced a number of measures to protect the UK economy. SMEs were hit with the lift of the zero-rate tax band which places a 19 per cent tax on all their profits, rather than the first £10,000 profit being tax-free.

If I were a gambling man, I'd place my bets on the property market being on the agenda. There's been talk of a Business Property Renovation Allowance - a capital allowance available to businesses who renovate properties in disadvantaged areas. Great news for the Valleys and property-entrepreneurs everywhere.

The flip-side of the coin is the possible introduction of a planning gain supplement - a tax charged upon grant of planning permission.

It's thought the rate will be set at 20 per cent and is set to shake up everyone involved in the industry.

Another hot Budget topic is inheritance tax.

The boom in property prices means one in three households in the UK now find themselves liable to pay inheritance tax. By raising the nil-rate band, Brown could win some valuable votes without reducing his overall revenues too badly.

As always, the Budget is likely to bring some unexpected surprises to us. Brown may be counting on votes for his move to Number 10, but that's not to say we'll get off lightly. Peacheys is one of the leading business advisors and chartered accountants in the region, specialising in a range of business solutions, from growth and profit improvement, to mergers and acquisitions, business sale, tax and retirement planning. It employs 40 team members from its two offices in Newport and Abergavenny.