The 2010 budget has been met with minimal reaction and is very much regarded as a pre-election buffer budget designed not to rock the boat and consequently lose votes. The last budget before the general election has come and gone – a budget, which it must be said, has generally left businesses with more questions than answers.
The overarching aim seems to be to increase borrowing, provide small businesses the best possible platform to maintain business and reduce anti-social behaviour through alcohol/tobacco tax increases.
Unsurprisingly, the budget – as they tend to be just prior to an election – contained a great deal of political rhetoric and not a great deal of financial detail.
As a result, businesses are left wondering how exactly the government – should it be re-elected – will tackle the UK’s massive deficit. Businesses are left wanting greater clarity on what public sector spending cuts are to come.
A strong indication of stability was required from the budget, so businesses can make decisions without worrying whether the rules are going to change. Businesses would also have been looking for signs of fiscal competitiveness for the UK.
Industry commentator Alex Miller shares his views on how this budget will affect your UK businesses.