Stopping short of jumping on any bandwagons, or just bashing the Chancellor for countless ‘Darlingisms’ that have been used to disguise the what would seem like a lack of help for just about everyone, I have to say that I’m not overly impressed with this year’s pre-budget report, since there wasn’t a great deal in it. But I was surprised…
For too long, companies like ours, along with the likes of Google, Royal Mail, HSBC, Alibaba.com and the Institute of Export have been beating the exporting ‘drum’ – to notable success, with our partnership and innovations we’ve developed in 2009. However, at a time when the nation is fast approaching £200bn in the red, you would like to think that the government would make a priority out of boosting UK exports. Not so, if today’s pre-budget report is anything to go by.
If you take a closer look at what measures in the pre-budget report would affect UK exports, there were some absences that simply shouldn’t have gone unnoticed. Well, they shouldn’t if you’re like me and you believe export is the only credible way to redress our increasing trade deficit, that is.
Two fat ladies - Nothing to do with Bingo.
For all the bingo-tax reductions, bank bonus super tax hikes and the growth-promoting rhetoric, I have to say I was very disappointed not to see anything that could have an instant impact upon unemployment and tackling the problem of balancing the books.
I would have liked to have seen more initiatives and incentives for SMEs to dip their toe, at the very least, in overseas markets. There is so much opportunity out there and it’s a shame that many companies aren’t given encouragement to take advantage of that.
Simple measures, such as a reduced (10%?) corporation tax on revenues generated from export sales would give businesses the largest incentive to start exporting. Other measures, like a six-month NI holiday for employers on new employees would encourage firms to create more jobs. These are the things that were plainly missing from what was a fairly flat, relatively inoffensive and meaningless announcement.
Today’s pre-budget report sets out measures that are by no means drastic, nor do most of them come as a great shock. However, the lack of focus on growth, notably since we’re in what is now an “exclusive” recession club, is very surprising to me – and frustrating. It seems, for now at least, if firms are to grow, they’re going to have to do it on their own.
I’ve said many times before that the UK could be missing out on the exporting boat – I just hope next year won’t be too late.
Completely agree. It does seem odd that Darling can at one point refer to the need for growth from export & international UK-based businesses and then in the next breath announce a 1% NI hike for the very employers who he is depending on to dig us out of this hole! Yet more pain!
I would have liked to have seen proposals to reduce corporation tax to keep us competitive internationally and perhaps a reduction for overseas generated income as you suggest (along the lines of the 10% ‘patent box’ that was announced) could be a way forward?
Not long til the Budget real early next year – if his forecasts don’t come off I fear there will be some nasty changes in store. What do you think?
The 10% similar to the ‘patent box’ is exactly what I was thinking and would have loved to have seen. I think something like that would have really fuelled export in the UK, and if we are to close the deficit hole in a sustainable way then that is the only way to do it.
As regards the actual budget and his forecasts then I think we will potentially see some very unwelcome measures for the business community!
I agree, businesses is going to be effected most. In the end the consumer is going to feel it.