Budget 2009: instant response
Article Date: Apr 22 2009Entrepreneurs and advisers offer their immediate reactions to measures announced in Chancellor Alistair Darling’s Budget speech.
The new fund for innovation
‘The headline measures to boost the technology sector in the UK are very welcome, although efficient delivery of the £750 million new fund will be key to ensuring it delivers value’
Barry Murphy, tax partner, PricewaterhouseCoopers
Scrappage
‘It makes no logical sense to crush a perfectly good, 10-year old car just as an excuse to buy a new one. It’s an environmental crime, based on greed. What’s more, the UK economy will not benefit from the subsidy; UK taxpayers will be funding vehicle factories in other countries, as 85 per cent of new cars sold in the UK are imported.’
Ling Valentine, owner, LINGsCARS.com (car leasing company)
Energy efficiency
'The extra £165 million of interest-free loans to be made available to business and the public sector to expand existing energy efficiency programmes is most welcome. This loan initiative makes perfect business sense as it will deliver low cost carbon savings and drive significant overall cost savings for the UK economy'
Tom Delay, CEO, The Carbon Trust
New initiatives
'As with any government intervention for small and medium-sized enterprises (SMEs), Darling needs to ensure these measures are more easily accessible and understandable. Otherwise, as with many other initiatives to date, there will be considerable confusion and most importantly a barrier to access for SMEs'
Edward Rimmer, chief executive, Bibby Financial Services (UK & Ireland)
Trade credit insurance
‘Over the past 12 months the reduction in credit insurance and in some instances the withdrawal of it has hurt both retailers and suppliers and created much uncertainty in the sector. Any move to boost confidence must therefore be supported’
Tarlok Teji, head of retail, Deloitte
The new top rate of income tax
‘Most of those in the top two per cent of earners are people who risked their own capital and assets, as entrepreneurs, to start new companies and create wealth and employment. The Tories should argue to retain the current tax structure for those who have built successful businesses, but impose them who have grown to large salaries in secure employment’
David Rose, CEO, GrowthWire (early-stage investment newswire)
The economy
‘The chancellor had the chance to increase the standard rate of VAT to 20 per cent, which would have added an estimated £12.5 billion to the Government’s coffers. Instead he chose to increase borrowing to £175 billion, nearly double that of 1997’
Andrew Jupp, head of tax, Tenon
