Today the Chancellor proposed a series of measures in his Pre-Budget Report which are, apparently, going to turn around the Great British Recession of 2008.
Some might have assumed that the Right Honourable Gordon Brown was to give this speech - after all, he has made every other comment on the economy in the past 3 months and no doubt he wrote it (according to some). Darling is, after all, just his puppet spouting it out (according to some). Many people are saying that the person who caused this mess and promised no more boom and bust should have stood up and accepted the blame.
As for the VAT announcements, then doesn't cutting VAT, then adding the saving back on to fuel excise duty, mean that zero rated food in the shops will be more expensive? So how does that stimulate more spending elsewhere? Also, and maybe I am an old green cynic, but all I can see with a box of £4.19 washing powder falling to £4.10 is that it will still be £4.19, and the retailer will simply take an extra bit of profit!
On the plus side, there is to be no 'Income Shifting' legislation introduced into the 2009 Finance Bill. At least the Government seem to have recognised that this nasty piece of proposed-legislation is unfair and is simply another way of attacking Family Companies in the wake of some high profile tax cases in recent months. I can hear the wiping of sweat from the foreheads of many Family Company Directors as I type. But for how long will this respite last? Who knows? To quote "The Government will instead keep this issue under review". So, more uncertainty for Family Companies, but at least today's announcement has given a temporary lifeline for some.
There will be National Insurance changes too. But can't anyone see that the only way to stave off the recession is to create more employment opportunities? Increasing the rate of secondary Class 1 NICs is not the way to do that. Abolition of secondary Class 1 NICs and the myriad of other regulations that waste the small businessman's time and money is required; but it won't happen because nobody in Government has the foggiest idea of how the backbone of the economy actually works (according to some).
There was some talk today too of helping out company tax debtors (i.e. companies who can't afford to pay their tax bills). So I called the deferment helpline and they didn't have a clue. There is apparently no new guidance - it just seems to be a new phone line that redirects you to the old system of being unable to pay. Poor chap didn't seem to have a clue what was going on although he tried really hard to find the guidance for me, before deciding there wasn't any. I just hope he was just the work experience lad and not the real deal.
The next few days whilst all this is analysed are going to be very interesting. Very interesting indeed. Until then, this little green amphibian is going to take a long deep breath, relax, and sleep. Tomorrow it will all seem like it was just a bad dream.
Some might have assumed that the Right Honourable Gordon Brown was to give this speech - after all, he has made every other comment on the economy in the past 3 months and no doubt he wrote it (according to some). Darling is, after all, just his puppet spouting it out (according to some). Many people are saying that the person who caused this mess and promised no more boom and bust should have stood up and accepted the blame.
As for the VAT announcements, then doesn't cutting VAT, then adding the saving back on to fuel excise duty, mean that zero rated food in the shops will be more expensive? So how does that stimulate more spending elsewhere? Also, and maybe I am an old green cynic, but all I can see with a box of £4.19 washing powder falling to £4.10 is that it will still be £4.19, and the retailer will simply take an extra bit of profit!
On the plus side, there is to be no 'Income Shifting' legislation introduced into the 2009 Finance Bill. At least the Government seem to have recognised that this nasty piece of proposed-legislation is unfair and is simply another way of attacking Family Companies in the wake of some high profile tax cases in recent months. I can hear the wiping of sweat from the foreheads of many Family Company Directors as I type. But for how long will this respite last? Who knows? To quote "The Government will instead keep this issue under review". So, more uncertainty for Family Companies, but at least today's announcement has given a temporary lifeline for some.
There will be National Insurance changes too. But can't anyone see that the only way to stave off the recession is to create more employment opportunities? Increasing the rate of secondary Class 1 NICs is not the way to do that. Abolition of secondary Class 1 NICs and the myriad of other regulations that waste the small businessman's time and money is required; but it won't happen because nobody in Government has the foggiest idea of how the backbone of the economy actually works (according to some).
There was some talk today too of helping out company tax debtors (i.e. companies who can't afford to pay their tax bills). So I called the deferment helpline and they didn't have a clue. There is apparently no new guidance - it just seems to be a new phone line that redirects you to the old system of being unable to pay. Poor chap didn't seem to have a clue what was going on although he tried really hard to find the guidance for me, before deciding there wasn't any. I just hope he was just the work experience lad and not the real deal.
The next few days whilst all this is analysed are going to be very interesting. Very interesting indeed. Until then, this little green amphibian is going to take a long deep breath, relax, and sleep. Tomorrow it will all seem like it was just a bad dream.
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