Pre-Budget Report Response

The biggest Budget, for any Government in over 100 years and not surprisingly Darling does not fail to disappoint.

This is a Political budget, designed not in the interests of the Country but a weak attempt to keep Labour in with a chance of winning the next election.

Why I here you cry?

Simple, most of the bad news is coming after the election. We aren’t going to be honest with you and tell you how much we are going to take away from you just now, as you will put us out of power!

Some bad news had to come out of course to create the smoke screen.

National Insurance is going up for both employer and employee by 0.5%. Tax Rise!!

Inheritance tax threshold is staying put – it typically rises each year – Tax rise!!

VAT going up as planned back to 17.5% from 15% – Tax Rise!! 

Stamp Duty holiday on certain properties to end in January 2010 – Tax Rise!!

The problem here is that Labour did nothing in the good days of a booming economy. Had it done so it would have done what it promised in bringing an end to the Boom and Bust culture, they claimed the Tories brought about. No… of course Labour , sat back, milked the profits and continued to badly manage the economy.

Darling has introduced a 50% tax on bank bonuses over £25,000, but he has not addressed the matter where Bankers ask for their bonuses to be converted to salary or deferred until next year! So Bankers will get their pay… despite having brought the Country to its knees. What a weak Chancellor!

There was some good news in that the 1% corporation tax increase has been postponed for now but no doubt it is coming in due course. State pension will rise by 2.5%.

Ultimately this “Bingo/ Boiler” budget is deferring a very real problem, symptomatic of a Government clinging to power with an election due. Be in no doubt, it is not good news for us.

The biggest and most concerning issue about this budget is that yet again the figures are all based on assumptions of ambitious economic growth, that Labour has failed to get right consistently for some time now. This could and will lead to much bigger tax rises down the line.