Back to the future
I felt almost nostalgic this morning when reviewing : it was very much in the tradition of Brown’s early Budgets and manifests the great paradoxes in his version of New Labour.
Here’s why:
1) Like those early Budgets, it imposed relatively tight constraints on public spending growth;
2) It was very good for the City, the creative industries and the service sector;
3) At best, it did nothing for Britain’s hard-pressed manufacturing sector and at worst it was harmful;
4) It was a reforming Budget in that it has undoubtedly simplified the personal tax and corporate tax systems (although much of what he proposes is simply a reversal of the tax-complexity of his own making);
5) It was rational, in aligning capital allowances with economic rates of depreciation;
6) It was tough on those individuals whom he perceives to be “gaming” the tax system, disguising themselves as small businesses (though in the process, he has probably hurt some proper small businesses);
7) It heaped its rewards on working families with children in the middle to low income brackets, took next-to-nothing from those on highest incomes, and contributed little to the childless at the bottom of the income scale;
8) He fudged the presentation of the Budget, in that he wanted it to be seen as both a serious reforming budget and a bribe to Daily Mail readers.
I'm 
°ä´Çłľłľ±đ˛ÔłŮ˛őĚýĚý Post your comment
Does he really think we are all stupid. None of the benefits really start for a year or more so plenty of time for him to change it once/if he becomes PM. He also does nothing for the poor single people. My daughter earns between ÂŁ12-15k and after tax/NI etc has little to spare for housing, food and next to NIL for socialising. Yet, if she got pregnant and had a child she would be showered with money - hardly seems fair for a socialist chancellor.....
Good article Robert but this being a bit kind....
"He has probably hurt some 'proper' small businesses"
He has hurt A LOT of 'proper' small businesses on the tenuous justification of hitting some tax avoiders.
At first I was excited about the budget. As I got to work we where all talking about it.
I work for a leading UK heritage charity and we soon realised that the new budget will have implications for us on our Gift Aid claims. So the budget is bad news for charities and with the Olympics sucking up money from HLF the financial future of many charities work is starting to look bleak.
I incorporated 4 years ago as a legitimate business. We have profits that vary significantly hence the reason for incorporation. We have just moved premises and spent ÂŁ20,000 on new computers, printers etc. We do not do that each year. We were about to employ someone else but will now shelve that to see how things pan out. Brown has throttled the life blood of employment. I do not understand the logic. There must be a way of dealing with "rogues" without using a sledge hammer!
Very frustrated. It has decided my next vote at least.
well what a budget,tax cuts gee wiz
overall the tax burden ,interest rates and debt levels and the reduction in our manufacturing base will have a big effect on our economy
in the future, when all these so called politicians are sunning themselves on gold plated index linked pensions,the majority of the uk population will have to shoulder the cost of flawed policys. gordon brown has stolen money from private pension funds and has condemmed people who have saved for their old age to a life of misery,
will gordon tell us how much he is worth ? dont hold your breath
It's curious that you don't think a Ltd Company with one employee is a "proper business". There are thousands of such businesses across the country. Many of them will expand and take on other employees.
But even if they don't expand, they are just as much "proper businesses" as any other business. Surely they deserve a taxation system which treats them fairly in comparison with every other business?