Budget 2010: The UK government gives with one hand and takes with the other!
The Chancellor the Exchequer, Alistair Darling, today reported a £245 million package to help UK businesses through what has been the most challenging trading environment in living history. He placed himself in the position of the saviour of the UK economy and UK businesses, offering relief which will obviously assist many in the short term, but what is the real underlying position?
While there is no doubt that the £245 million package which was put forward will assist UK businesses the Chancellor the Exchequer failed to mention the increase in national insurance which comes into play next April costing an additional £4.5 billion next year and a further £4.7 billion the year after. These figures absolutely dwarf the £245 million put forward by the authorities today and lay bare the government's claim to be the friend of the UK business arena.
It is believed that the rate of national insurance was increased purely and simply so that the Labour Party could honour a long term pledge, not to increase the basic rate of income tax. Whether this is true or not is debatable but like so many governments before we have seen much use of smoke and mirrors today and we are likely to see further use in the future - no matter which party is in control.
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