Low Key Budget

Yesterday Alistair Darling delivered the 2010 budget. It was very low key.

The highest profile change was abolishing stamp duty (for 2 years) for first time buyers buying a property under £250 000; the money will be recouped on a higher charge on £1 million plus properties.

More thoughts are in a column I wrote for the Swindon Advertiser.

What is the Pre Budget Report?

On Wednesday 9 Decemeber 2009, Alistair Darling delivers his Pre Budget report.
But what exactly is it?

It's a half time report on how the government is doing meeting its financial commitments.
It should be interesting in a time of decreasing tax revenue, government debt, unemployment and an election within 6 months.

To be continued....!

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As it turned out, there were few changes.
A few extra taxes on City fat cats' bonuses & pensions, a bit on national insurance and VAT & stamp duty on house purchases.
For further details see my article for the Swindon Advertiser.
http://www.wiltshirebusinessonline.co.uk/news/latest/4785410.print/

VAT Reduction of 2.5%

Will Alistair Darling's 13 month reduction of VAT by 2.5% have any effect on an ailing economy?

A client remarked to me last week that they would not rush into a shop advertising a 2.5% reduction..

One problem for businesses is re-calculating their VAT bills.

Pre Budget Report November 2008

Alistair Darling delivered his pre-budget report. The main points

• Temporary 2.5% cut in VAT to 15% from 1st December for 13 months
• New 45% tax band for those earning more than £150 000
• National Insurance to go up by 0.5% in 2011
• £60 Christmas gift for pensioners
• Phased increase in vehicle excise duty

The key question is that will the government be able to pay for the increased borrowing caused by events such as bailing out failing financial institutions and financing wars in Iraq & Afghanistan.