2017 UK Budget
2017 Spring Budget
A forecast of lower growth.
Therefore, thought the Chancellor...
We need to give a mild kick in the teeth for the self employed.
And also fail to help "bricks and mortar" businesses via business rates.
It seems the Chancellor wants to create a self fulfilling prophecy- by slamming business and self employed located in the UK, he gives advantage to foreign businesses that can locate on any shore. This will ensure our rate of growth is kept low.
Additionally, by adding a disincentive to joining the virtual workforce, growth is slowed for larger companies who want to grow, but cannot afford the risk of full employees.
The Conservatives have turned on their key supporters (even I mean voters) - the aspirational and the entrepreneurs - those that will offer solutions to the lower growth forecasts. Those that will find the opportunities post-Brexit.
The increases in NICs are small potatoes, but it is the spirit of the message here - if you are making a choice between becoming a wage slave or branching out on your own to create your own business - take the wage slave route. If you are lucky enough, you will be able to work for one of those large foreign enterprises that pays little tax.
So, I feel this is an accountant's budget based purely on the numbers without any flair or creativity. It lacked encouragement of entrepreneurship in the brave new world the United Kingdom is embarking on. It was stuck between two stalls - an inertia on business rates and a long term move to reduce the difference between self employment and permanent employment. The discrepancy between the various types of income in the National Insurance scheme has been a long standing inequality in the system. Something to fix when the waters are calmer, not when the very people who are being hit are the very people that will be finding the solutions.
So what kind of flair could the Chancellor have used?
- Reverse the triple lock for pensions (RPI tracking is sufficient)
- Reduce the increase in the income tax threshold
- Introduce an export lottery - each company exporting in a particular VAT quarter is entered into a lottery to win a meeting with the Prime Minister/Chancellor/5% off next quarters' VAT bill
- A similar lottery for companies that add a new person to their PAYE payroll over a year, win 20% off employers NIC bill
A new Economic Service Medal for entrepreneurs that build a new business and employ people.
A new Scientific Service Medal for those that make a contribution to scientific progress
Competition to build the most effective and efficient solar panel prize say £100,000, winner to be announced next year Give a grant to older NHS hospitals to insulate windows and doors.
So please Mr Chancellor- more flair next time?
