Pre budget report - the final year of certainty
Thursday, December 10, 2009 at 04:42AM The PBR yesterday was probably not as exciting as some people had hoped for in terms of the government outlining their plans to ease the country out of the recession and reduce the national borrowing.
I guess with a May election there was always going to be some political manoeuvring. As with the previous chancellor, Darling, likes to announce measures not for the next year but for two years time.
Yesterday was no different with various announcements that will be enacted from 6 April 2011 and with a possible change in government – with new ideas and plans – I think that this means that 2010 / 2011 will be the last year of certainty for business owners and individuals.
I think it is clear that to face up to the rising national debt challenge and to protect the national AAA rating tax rises will have to be part of a credible national economic plan.
Our European neighbours operate in economies where the burden of tax is higher and I suspect that there will be some pain to come over the next few years.
Until then though we know where we are with tax rates and legislation and can therefore plan with some certainly for the next 12-15 months.
With all the doom and gloom I tried to find one glimmer of light and eventually did. A tax cut – the rate of bingo duty fell from 22% to 20%!
For a full breakdown and analysis of the PBR statement please visit Nicholsons website.
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