Chief Executive’s Blog: Immediate Reaction To The Budget

It was no surprise that Alistair Darling played every political card he could, and David Cameron made the speech he would have made whatever had been announced.  And nothing unexpectedly unpleasant unless you drink cider or are Lord Ashcroft. I didn’t expect any further general tax rises, and there don’t appear to be any that weren’t already announced.  The cut in business rates will be welcome, and the phasing of the fuel duty increase over the next year will ease its impact slightly.  We should be grateful for small mercies. There were further signs of a desire to show the Labour Government’s support for small business in the commitment that the taxpayer-owned Lloyds and RBS will make £94bn available for new business loans.  However, there will be some cynicism about this, given the difficulties that have been reported in securing funding from the last round of Government schemes.  That’s been recognised by the introductionof a credit adjudicator to fast-track complaints from smaller firms who claim they’v been denied credit unfairly.  It’s a good idea – if it works. Both parties are pledged to introduce a green investment bank.  That’s another good idea, but the devil will be in the detail.  Let’s wait to see the deals. What we don’t know is how far the capital investment budget has been preserved.  The individual departments will publish details this afternoon of their revised spending plans. While most people will not be bothered by the increase in stamp duty for properties worth over £1m, it will have an impact on anyone who was looking for – or hoping to sell – their premises. We’re expecting a more detailed (and expert) analysis from the Construction Products Association later in the afternoon.