Flint Bishop

Budget did not help businesses in REAL terms say Midlands based consultants

Pictured above: Mark Harris

 

A leading Shropshire business improvement consultant has accused the government of producing a clever piece of political window dressing rather than a Budget that provided real help for businesses. 

Mark Harris, Managing Director of business improvement consultancy, The Business Company, based near Shrewsbury, said the Budget was just a 'holding' job that was designed to be a thinly disguised political manifesto.

"It is fair to say that after two years of economic downturn," he said, "the Chancellor has clearly recognised the need to place business at the heart of this budget 'manifesto'. And there is no doubt that doubling the annual investment allowance, helping with business rates and allowing entrepreneurs to keep more of their gains will prove popular."

"However, much of what was outlined will, in all reality, not come to fruition - as whichever political party is elected will need to re-set out their store in the first budget, which will come at the end of June or at latest early July."

"From a small business perspective, what many early commentators on the superficial benefits of the Budget failed to consider was the effects of announcements in the previous budget which are being felt today. Things such as higher rates of national insurance contributions, higher fuel duty - even if it is phased in, 50% income tax and higher rate pension relief restrictions."

Based on his own experience of working with small successful businesses that are looking to grow, Mr Harris says the last twelve months has also shown that banks are not interested in investing to support the small business sector. He believes on balance this points to a bleak picture for the small businesses that are the backbone of the British economy.

"Whoever is successful in the next election," he says, "I would implore them to support the dynamic, innovative entrepreneurs who are going to need incentives and real help to drive their businesses forward and generate the wealth, profits, jobs and investment this country desperately needs. The next Chancellor must set out a clear plan for the reduction of the budget deficiency which still continues to threaten business confidence and investment, and make cuts in the public spending, quangos and waste that is dragging this country to the brink of bankruptcy."

 

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Article published by Midlands Business News on 30 March, 2010

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