The Budget: A Recap

Earlier this week, a budget was delivered that will be viewed as a success or failure depending on events occurring in the not too distant future.

What’s undeniable is it completes the shift from a small state low tax economy to the diametrically opposite, whether you think that is good or bad will largely depend on your political outlook.

The Chancellor was keen to push the message of growth and there were some welcome announcements aimed at encouraging business to make capital, R&D and training investments as well as national infrastructure spending. However, standing against those measures are significant tax raises which kick in next April for both businesses and individuals, the forecast rise in inflation with the anticipated interest rate increases that will flow from that together with the continuing, and increasing, impact of Brexit.

If you’re a drinker then you perhaps have something to look forward to down the line, if you’re a climate campaigner then you sadly don’t. The anticipated rate of overall unemployment being lower than feared was welcome news, but the long-term growth forecast is less welcome.

The global economy is not strong with the scars of the pandemic still present, but it is recovering and there is plenty of private equity funds available for investment. Some sectors of UK businesses are considered as undervalued, which coupled with a weak pound, may drive further inward investment.

Therefore much will come down to confidence, both at home and abroad,  whether that rises or sinks we will discover as the next six months or so unfold before us and that will dictate how this budget will ultimately be viewed.

These notes have been prepared for the purpose of articles only. They should not be regarded as a substitute for taking legal advice.