BiPartition

Friday, December 18th, 2009

The Prime Minister and the Chancellor of the Exchequer Disappoint Small and Medium Sized Firms Yet Again

Lots of individuals including myself were with the Pre Budget announcement .

I had wished that the chancellor would have been proactive and started to address the burning concerns such as the existing dreadful state of the public finances, Public sector earnings, helping and supporting , boosting saving and investment and forcing the banks to be realistic about lending to businesses.

Like most company directors I concur that we need to have a combination of tax gains in addition to expenditure cuts.

The old logical argument from New Labour is that immediate expenditure cuts would hurt the UK economy and handicap the recovery. My opinion is that although sweeping immediate cuts could cause a problem, the timescales proposed is just a little too late.

It seems that the Chancellor is just tinkering around the edges of any reform and does not want to rock the boat too much prior to an election.

The upshot of accelerative public borrowing can be seen when you look at the Irish Economic System. The once Celtic tiger has had its claws taken out. Present-day cuts in pay are a realism along with drastic measures to shrink public borrowing.

I almost choked on my tea on wednesday, whilst watching the six o clock news. Local Government unions were protesting about a cap on salary increases of 1%.

I would much rather be in that position, as opposed to being employed for the Public sector in .

Many small small and medium sized proprietors have actually taken pay cuts in the last year, due to the slowdown.

As ifa’s we offer a Small Business Advice service to our clients on a daily basis. I would have chosen to see a more elementary approach to sustaining industries as they are an key part of the UK business framework.

This entry was posted on Friday, December 18th, 2009 at 10:53 pm and is filed under Biz, Commerce, Finance Online. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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