MEMBERS OF the UK200 Group of accountancy and lawyer firms, have given a mixed reaction to suggestions by shadow chancellor Ed Balls that next month’s Budget should include a cut in VAT and a three pence cut in income tax for a year, in an effort to boost economic growth.
David Ingall, of JWPCreers, said a VAT cut would cut the cost of living, but also said that “slashing red tape” was probably more important than tax cuts.
Ian Abrey, partner at Hillier Hopkins, said the suggested tax cuts might not boost consumer spending and economic growth
“Mr Balls does not say what the total cost of the proposed measures would be and there is no guarantee that the windfall would find its way into consumer spending to give the UK economy a nudge in the right direction,” he said.
Andrew Watkin, of Baker Watkin, said raising the tax-free personal allowance to £10,000 per year was a good idea “as those who are not so well off will see a long term permanent increase in their income, whereas a reduction in VAT would only be temporary”.
The UK200Group is an association of chartered accountancy firms and law firms, with over 150 offices in the UK and 50 member firms worldwide.
Brexit could hit UK GDP by as much as 3% by 2020, the international economic body has claimed
Governmental pressure to crack down on tax evasion is resulting in HMRC applying its criminal investigation policy in an inconsistent manner, writes Kingsley Napley's David Sleight
Colin takes a wry look at how accountants are funding their retirement
Chancellor releases tax return following the controversy surrounding tax affairs of politicians, reveals connection with accountancy firm HW Fisher & Company