Budget 2015 - business highlights

By : Administrator
Published 8th July 2015 |
Read latest comment - 12th July 2015

  • Living wage to replace minimum wage and set at £7.20 next April, rising to £9 by 2020.
  • Corporation tax cut to 18% by 2020.
  • Fuel duties frozen for the remainder of this year
  • New car tax bands with a standard charge of £140 - and new cars will not need MOTs for the first four years, rather than three

BBC Budget 2015

Interesting one about MOT's. Not sure if you can call it business related not sure if that's a good or bad idea. Obvious cost savings, but 4 years of a car or traders van being run in to the ground without any obligation to get it checked other than losing a warranty is a bit of a worry?

Any initial views?


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn
Comments

It seemed pretty up beat to me, if it were me I would have cut benefits a lot more. I think IDS has done a brilliant job over the last few years dealing with the benefit culture of this country. Not sure what the value of £9 will be in 5 years time, but it is a start in the right direction and with a reduction in corporation tax it is only fair that employers pay a fair wage. The whole idea of taxing people and then giving it back to them dressed up as a tax credit, is simply crazy. If you do a fair days work you should get a fair days pay. I've always been in favour of free education, regardless of status but only for proper educational skills / qualifications, not for the likes of media studies etc. Longterm the country benefits, telling youngsters that they will have a debt to pay after they leave university isn't really encouraging them to better themselves...


Thanks,
Barney

It seemed to be positive. Trying to absorb about the scrapping of the dividend tax credit versus the new £5k tax free div, and the new tax rates. One for the accountant.

Increase to £3k employer NI contributions tax break should be welcome by a lot of firms. I suppose it's a counter balance to the new living wage.


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

On a personal level we'll be worse off so I'm not too happy. The living wage needs to be  increased more as people can't survive on such low wages. 

Not sure I agree with corporation tax decreasing...they need to get the big boys to actually pay their tax! Loopholes are a big issue. They lose way more tax than is paid out in benefits, but that's what everyone gets upset about, thanks to the media!

 


get the big boys to actually pay their tax! Loopholes are a big issue. They lose way more tax than is paid out in benefits, but that's what everyone gets upset about, thanks to the media!”
 

Supposedly they will be clamping down on big company corp tax, lets hope so. Keeping it low and lower than other Euro countries is a good strategy to keep foreign business in this country and create jobs.

It would be nice to see a low corp tax threshold for smaller businesses, maybe upto £250 or £350k to encourage growth.

Not convinced about the tax evasion lost revenue versus the cost of welfare. Last I heard Corporate tax evasion was around £4 billion, while according to the office for Budget Responsibility, the true cost of welfare to the country is a staggering £410 billion a year 

There was a big thing about benefit fraud versus tax evasion in recent months, which claims that tax evasion far outstrips benefit fraud by about 4 to 1, so got a lot of media coverage. But the actual welfare bill itself is a terrifying number.

Living wage is a really tough one, especially for anyone on a low income. With an employers hat on, I think it's a good thing, but also sympathise with small firms who have had margins squeezed, and a couple of quid soon adds up when it comes to salaries. Firms like hauliers that have really tight profit margins, and are getting hammered with fuel costs will lose out to European firms that will pay their drivers less.

Its a nightmare balancing act, get it wrong and people can't live, or businesses fold and people are unemployed. 


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

It is definitely good to make changes to boost businesses and therefore the economy. The fact that low income families will now be worse off, at least until the new wage rates all come in is VERY worrying. Welfare is indeed in a mess, I do think that if only they spent a significant more on the fraud investigation into both tax and benefits they would get a lot back. The fraud departments are so underfunded. I know there is a push to catch cash in hand people and the like so hopefully this will all make a difference. We all need to report people though! 


Need a Opposition that calls Government to account on the right issues. I wonder how long it will take for them to "get off the ropes "…….”
 

It's quite an odd political landscape at the moment, with the noise from the SNP, and labour in complete disarray. 


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn

This Thread is now closed for comments