Lambert Chapman LLP’s Nigel Whittle reviews the 2010 Budget

Alistair Darling managed to divert attention from the governments budget deficit for the afternoon.  

Better than expected unemployment figures and public sector borrowing, sounds like good news. Combine this with a crackdown on taxation anti avoidance, further lending from government owned banks and a slowing down of tax increases previously announced, it is clearly an election budget with a mini feel good factor.  

However the tax rises next year are swingeing and for the higher earners, a tax rate of 50% will dampen enthusiasm to create wealth in the UK. Can this be countered with the doubling of Entrepreneurial relief and tax relief on plant and machinery? We were all very negative about the coming 2010/11 fiscal year but this budget does deliver some hope that things will not be quite as bad as we feared.

Lambert Chapman LLP’s Paul Short reviews the 2010 Budget

I remain an unrepentant advocate of Mrs Thatcher.  No consensus politics for her.  She called a Socialist a Socialist back in the “red meat” days of the 1970’s.

When asked, once, about Labour’s approach to business, she replied “Labour does not understand business, never has done, never will do”.

Mrs Thatcher also liked to discuss the economy as though it were a domestic housekeeping budget.  She reduced it to simple but essential truths.  You have to budget within your means. You do not spend more than you have got. I think Mr Micawber would sign up to that without too much problem as well.  

According to Labour the way out of the mess caused by their overspending is to keep spending.  I think I prefer Mrs Thatcher’s homespun economics any day.

The State can keep on spending but, somewhere along the line, the private sector has to generate the wealth to finance this.  At the moment Labour seems hell bent, through its policies, of driving out from the country big corporate business, non-doms, wealth creating entrepreneurs and others.  It is just increasing the burden for the rest of us.

 “They create a desert and call it peace”.

Lambert Chapman LLP’s Lisa Potter reviews the 2010 Budget

Buoyant budget boosts business confidence for upcoming election.  

Sadly, my headline was the most exciting thing to happen in the budget.  Predictable, safe, a few wins and some losses is more appropriate to describe the announcement made yesterday.  It was simply a budget to protect re-election and did not deal with the serious issues still facing our economy.  So what were the wins and losses?  

Small businesses can now invest £100k in new equipment with the increased annual investment allowance and using the loans that RBS Natwest and Lloyds TSB will be providing to them.   The housing market should pick up for the lower end as the sales value for stamp duty increases to £250k, although where should these first time buyers get the funds from to secure the deposits and mortgages needed to purchase them.  Increases in national insurance contributions and the implantation of the higher tax rate (60% effective rate for some individuals) will make this difficult.   Entrepreneurs relief doubled to £2m as many businesses value have decreased due to reduction in trading and recessionary conditions.   Inheritance tax frozen for four years at a level that is still currently unrealistic for many households as their primary property falls into play.  No changes to VAT and this could have been the real help to small businesses with a realistic change to the registration limit.    Other carrots offered are reductions in business rates and investment for training and innovation – one hopes it will be easier to achieve than all the previous schemes offered by the government which simply put a tick in the box and result in no action for the majority of businesses.   For me a budget full of hot air with no real solutions to dealing with the enhanced recovery of our economy.  

Finally good news, childhood alcohol addiction will reduce thanks to the rise in the price of white lightning cider.