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Chancellor's successful balancing act
08:00, 02 April 2015
There were some quick wins in the Chancellor’s budget but overall it is very much in line with the government’s long-term strategy.
It recognises both short-term electoral horizons and long-term economic needs. George Osborne’s focus on business growth and prosperity will receive a warm welcome from businesses of all sizes.
Kent businesses want to see more sustainable public finances and they also want governments to take steps to support growth.
I am sure we were all pleased to hear the mention of business rates but the jury is still out on the outcome of this one.
Talk and review is one thing but we need concrete action. For too long business rates have been stifling business growth.
Lower business taxes, allowances for investment, and targeted support for sectors, regions and small companies all contribute to confidence, investment and job creation.
The Chancellor avoided the temptation to use newfound windfalls for gimmicks. His focus on fiscal responsibility will play well with business audiences.
There is a question over whether warm words on upgrading broadband and mobile networks will translate into change on the ground.
While companies appreciate the Chancellor’s ambition to extend ultra-fast broadband to much of the UK, businesses in Kent remain sceptical until they see markedly better connectivity on the ground, especially after it was revealed this month that a street near Romney Marsh has the slowest download speeds in the country.
Until there is real change, too many companies will continue to operate at a competitive disadvantage to their international rivals.
The cancellation of the fuel duty increase scheduled for September will certainly be welcomed by both business and consumers – certainly a vote winner.
Steps to support those who are self employed will also go down well and I am sure entrepreneurs will be rejoicing at the thought of not getting the annual tax return come through the door.
There is good news for the KM Group too as Mr Osborne has recognised that local newspapers are a vital part of community life and have had a tough time of late. He announced a consultation on how the government can provide tax support.
I liked his phrase “Britain is walking tall again” and it appears George Osborne has pulled off a difficult balancing act, maintaining fiscal discipline while ensuring that necessary deficit reduction doesn’t undermine the UK’s growth prospects.
Let’s hope things continue on a positive vein after the general election.
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