call: 01344 420 625

24th March 2011 - Budget Comment

Overview
"The Chancellor has delivered his Budget for 2011, which he sees as a Budget for growth. While some of his measures may encourage growth i.e. through the reduction of Main Line Corporation Tax and increasing Entrepreneurs Relief (in the long run), in the short term the setting up of Enterprize Zones and help with Apprenticeships is still potentially difficult.
 
On the personal tax position the highlight was the increase in Personal Allowances of £630 for 2012-13, except for higher rate tax payers, where once again he has brought down the starting rate of higher rate tax so they will be no better off. With new tax rates coming in from this April, including higher National Insurance Rates, one wonders how much pressure personal disposal incomes take take without having an adverse effect on growth.
 
One of the more interesting discussions surronding the Budget, was the surprise announcement of a 1p drop in fuel excise duty. This is welcome. The Chancellor then deferred the proposed increase intended for April. This was hardly a saving as he claimed, it just means we won't be worst off. Although its unlikely we'll notice any difference. With all the political unrest in the Middle East pump prices are likely to continue on their upward trend. It looks like the days of £1.20 are now a long lost bargin!"

If you have any questions relating to the budget or any other matters, contact us.