The Budget - how was it for you?
Like, I’m sure, most people, I usually take the easily digestible snapshot of the budget and how it will affect me. Petrol. Booze. Tax.
But this time around, the budget has taken on new significance as the government do what they can to head off recession and economic disaster.
Have they done enough? Well, I’m not an economist so I can’t say if they’ve done enough just by looking at the figures. But, what I do believe is that this budget is a case of shutting the door when that horse is in the field and chewing clover. This budget, and the actions taken within it, should have really been delivered at the last budget. Talking to other business people, the signs of recession have been there for a long time. Less fingers should have been crossed and more boxes permitting business flexibility should have been ticked.
Reducing VAT will help non-VAT small businesses buying from VAT-registered businesses - but I suspect the benefit will be minimal and the unscrupulous are certain to add a little more to their prices to make up the different.
National Insurance increases will hurt all employers.
The Small Business Finance Scheme will certainly help give a sense of a safety net if difficulties arise payment a tax bill but I am always suspicious when the government uses words like ‘temporary’ (which tends to suggest gruesome penalties to those who fail to repay in a certain period) and nothing is ever easy when money, tax and the government collide so I wonder how much ‘proof’ and how many ‘loops’ businesses will have to jump through to be rewarded with support from the Finance Scheme.
So, all in all, at the moment, I’m not suitably impressed. I think the government really and truly are concerned and want to help. But it’s a case of too little too late and 2009 will be a horror story for many businesses.
Tags: 2008 budget, recession in 2009, response to chancellor's budget, uk budget
