The 2012 Budget and Business

In a week when Aspirin is revealed to be a universal panacea, helping ward off lethal health problems, the Chancellor of the Exchequer, in this week’s Budget, might just as well have told us all to take a daily dose of Aspirin, to help fight off the risk of double-dip recession.

The problem we all face is not really being acted on: it can be summed up as the fear factor which is inhibiting spending, investing, decision-making, expansion and growth.

Yes, the changes made in Corporation Tax and other company measures, as well as the reduction in the top rate of tax are modest steps in the right direction, but more scope for change could have been created by going a bit further in all areas tax and spending cuts.

One interesting letter in The Times pointed out that at one end of the social spectrum we have benefit abuse, gambling abuse and drink abuse, but that at the other end we have tax avoidance, posh racecourses and champagne spraying. Clearly this makes the Budget a difficult balancing act.

However, The Chancellor’s job is to be fair to the majority, but I fear that he isn’t tough enough on the recession and the causes of recession.

However, let us all start to take comfort from the fact that some can see a light at the end of the tunnel and let’s move forward more confidently, spending a bit more and generating business and stimulating growth, so that recovery becomes a self-fulfilling prophecy.

Neil Thomas

Published on Mar 22, 2012 by Neil Thomas