The general reaction from businesses was negative, with little incentive for any entrepreneur.   Quoting Rupert Merson, a partner at BDO Stoy Hayward  “this is playing politics with enterprise.  With the 50% tax on the highest earners, the chancellor has picked on those who have the best chance of pulling us out of the pickle that we’re in”

What do you think?

Has this budget helped you or made things worse.  Leave any questions and comments below.

The Good..

• Loss making companies can reclaim tax paid on profits made in the past 3 years.
• Main capital allowance rate doubled to 40% for 1 year.
• Cash-strapped businesses can continue to defer tax bills, with an extension of the ‘time to pay’ initiative.
• Some improvements to the Venture Capital Schemes may stimulate more capital becoming available.
• £2,000 new-for-old discount on cars, to be partly funded by manufacturers.
• Stamp duty holiday on properties worth up to £175,000 to be extended to 31 Dec 2009.

The Bad…

• Main rate for Corporation Tax unchanged at 28%. Small company rate to remain at 21% for a further year.
• Fuel duty is to be increased by £0.02p from Sep 09 and by a further £0.01p every April from 2010 to 2013.
• Alchohol duty to rise by 2%.
• Statutory minimum for redundancy pay to be raised by £350 to £380 per week

The Ugly..

• The pound suffered an instant hit following the Chancellor’s delivery of the budget, widely perceived to be a reaction to the unexpected jump in the top rate of income tax to 50%. This was seen as an attack on the City and would have the effect of encouraging top people to leave this sector for other shores, reducing long-term competitiveness in financial services.
• The economy is predicted to contract by 3.5%, with public borrowing expected to rise to 12.4% of gross domestic product this year.

What do you have to say?