Budget 2010 wishlist
To boost the economy the Chancellor has to find a way of encouraging people to spend, but what we don’t want is for people to spend at the expense of putting themselves in debt and it is better in the long run that our debt is being reduced.
One of the factors that will contribute to improving the economy will be clarity. There have been so many changes, and so many impending changes, especially to the tax system, that I fear a further raft of changes to tax rates would create uncertainty. When people are uncertain they don’t want to commit to spending and so this could have a detrimental effect. The Government really needs to ensure it doesn’t confuse the picture.
Therefore I believe the main thing Government has to do is put forward a believable plan for addressing the financial position of the country as this is what will give investors confidence in the UK.
A further commitment to extend the HMRC Time to Pay scheme would help small businesses. With such a high rate of unemployment, I also think there has to be some quite innovative measures to help entrepreneurs, as this will also drive the economy forward.