Pictured above: Steve Holden
The eagerly-awaited Budget has delivered a 'mixed bag of good
and bad news' for Midlands' businesses and households, according to
Steven Holden, Tax & Trust Manager at MFG Solicitors.
He said: "For many across the Midlands the Budget has been
neutral with both good and bad news. Billed as the 'budget to fuel
growth', the Chancellor has achieved some of the balance required -
but there's no getting away from the fact there is still an element
of political smoke and mirrors.
"I was delighted to hear that the Black Country and Birmingham
and Solihull have been earmarked as two of the UK's new 'enterprise
zones'. This is good news for businesses in those areas as they
could benefit from various financial incentives including tax
reliefs. This will stimulate enterprise and encourage investment.
That's great news for the Midlands.
"Some will eagerly await the Chancellor's announcement that he
is looking to simplify income tax and national insurance and the
single-tier pension scheme looks good on paper. However, these key
policy ideas need to work in practice and ultimately ease the
squeeze on unstable household incomes and the finances of
pensioners.
"I've no doubt that firms and households across the region will
be applauding the Chancellor's one pence cut in fuel duty and
further rise in the income tax personal allowance. However, with
the higher rate income tax threshold being dropped to compensate,
what looks like an early spring gift from the Chancellor is quickly
overlooked by the 700,000 extra people across the country who will
be plunged into the 40% tax bracket and possibly lose access to
child benefit."
Mr Holden concluded; "It's been no surprise that Mr Osborne has
adopted a steady-as-she-goes approach. He has announced some strong
measures which will gain popularity but giving with one hand and
taking away with another makes this a mixed bag Budget. It's only
when the dust settles, and the fine details are analysed, that we
will see a clear picture for what it means for the Midlands. To
many in the region that picture is saying 'it's good, but it's not
quite right'."