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.
You may also like
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.