Ok so the budget today was a slight case of overkill from Mr Osbourne, we know the country is upto its eyeballs in debt and action needs to be decisive, but we don’t want to overdo it and actually slow down the recovery that appears to have started. Not so sure about quotes I’ve read that high rate tax payers will be £1600 pa worse off, and any freeze/cuts on child benefits will be counter productive.
However I have to say that raising VAT to 20% is a sensible move – the more you spend, the more you pay. If you’re frugal and a saver, this will have a lesser impact. It will force most people to be more careful in their spending, which in turn means more chance of people spending within their means. Fair enough, businesses will be impacted, in particular smaller businesses where the possible loss in trade will mean profit margins could be slashed, but this is an across the board action, we will all be affected so will all have to tighten our belts and think smarter. Also, it only kicks in January 2011, so if you’re planning any larger purchase, make sure you make them this year! Its given me incentive to sort out what new car I want within the next 6 months!
#budget 2010