UK Budget – What is it and how will it affect you?

Okay, so I know it’s a day late, but hopefully you haven’t seen it yet (or read about the outcry it’s caused) and you’ll learn something new from this post!

Chancellor Alistair Darling’s Pre-Budget Report is one of the most important Pre-Budget Reports in living memory. Unlike the rest of the G20, the UK is the only country still stuck in recession after its economy contracted for the sixth straight quarter in November. With the projected fiscal deficits for 2009/10 and 2010/11 being revised upwards from £175bn, businesses are facing more attempts by the government to claw back cash.

Here it is at a glance:

-50% levy on bank bonuses over £25K
-inheritance tax threshold frozen
-state pension up by 2.5% in april
-borrowing to hit £178BN this year
-vat will go back to 17.5% on January 1
-bingo duty to be cut from 22 to 20%
-return to growth in fourth quarter
-green payment to scrap old boilers

So, what does it mean for you or your business? Well, first of all, the VAT going up means your prices will go up and those of your suppliers! What else? A new green agenda, staffing issues, national insurance rises, corporation tax, VAT and stamp duty! Businesses need to react quickly or face being outdone by the competition.

What does the pre-budget report mean or your business?

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