Boring Budget or what was the point Budget? The question really has to be what was the intention of the Budget as I can’t really say I know…
Most businesses have a staff shortage issue at the moment and a sensible solution is to extend free childcare funding, but why wait until 2024 when we need parents to return to work now? This is far too long and where is the care going to be provided from? This is an industry that pays National Minimum Wage, therefore no one wants to do the work and there are already stretched waiting lists and a shortage of available spaces.
I also question increasing the Pension Lifetime Allowance to encourage retirees back to work – is the pension limit the real reason people stopped working or was it more to do with the conditions and mental health of those roles that played a part and how will these be resolved? This does not feel like a solution in my opinion and whilst it may now help those to remain working that haven’t retired, is it really enough to encourage those back who have a pot large enough to probably see out their lifetime? This does help the wealthier to continue paying in though and at a maximum of 50% higher than previously – something that is likely to cost additional tax relief but at a personal and corporate level.
Capital allowances see another new term being introduced – “full expensing plan” – effectively meaning that the 100% first year allowances, annual investment allowance continues for those smaller businesses who probably didn’t hit the previous limits on spending anyway.
Corporation tax tapering remains – this was predictable as some extra tax is needed to fund the previous handouts from Covid which are now coming home to roost in terms of failed bounce back loans and fraudulent furlough claims that won’t see the money returned but likely continue to cost the taxpayer by paying for the offenders to have some respite in prison.
An unhelpful and definitely boring budget and we can’t even drown our sorrows as the duty on alcohol also sees an increase!
Posted by Lisa Greenwood
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