The Prime Minister and the Chancellor Fail to Help Small and Medium Sized Businesses Yet Again
December 16th, 2009Many people including myself were baffled with the Pre Budget announcement .
I had wished that the Government would have grasped the nettle and treated the key problems such as the on-going pitiful state of the public purse, Public sector earnings, supporting small companies, promoting saving and investment and forcing the banks to be realistic about lending to business organizations.
Like most people I concur that we need to have a combination of tax increases in addition to spending cuts cuts.
The old argument from New Labour is that immediate would hurt business and handicap the recovery. My view is that although sweeping quick cuts could cause a problem with the recovery, the length of time suggested is just not quick enough.
It seems that the Chancellor is just piddling around the edges of any reform and does not want to rock the boat too much an election.
The result of raising public borrowing can be seen when you look at the Irish Economic State of affairs. The once Celtic tiger has had its claws extracted. On-going cuts in pay are a realism along with forceful proposals to trim back public borrowing.
I almost gagged on my dinner on wednesday, whilst watching the six o clock news. Local Government unions were about a limit on salary increments of 1%.
I would much rather be in that position, as opposed to being employed for local government or public sector in Ireland.
Many small small and medium sized directors have actually taken pay reductions in the last year, due to the UK recession and slowdown.
As Independent Financial Advisers we offer a Business Advice service to our clients on a day-by-day basis. I would have loved to see a more radical approach to sustaining industries as they are an crucial part of the economy.
