The Budget was a genuine attempt to aid the economy, according to a survey of finance directors. Almost half of the 200 FDs polled for The Big Question, a new service commissioned by Accountancy Age and Reed Accountancy Personnel, discounted claims by the Labour party that the Budget was used to bribe the electorate.
Several FDs described the Budget as unexciting and 23% said they considered the effects to be neutral. But 47% argued that Chancellor Ken Clarke had aided the economy against a 30% who thought he had at least one eye on the election.
‘I believe there’d have been bigger tax cuts if the Chancellor was trying to bribe the electorate,’ said Robert Gunn, European finance director of VMark Software. Chris Hunt, FD of Innovex UK, agreed, but said the 1p income tax cut was disappointing. ‘I would rather the revenue had been invested in infrastructure rather than given to the public.’
One FD who felt the Budget was used to bribe the electorate said: ‘It was more an attempt to convince the electorate of the Conservatives’ supposedly responsible attitude towards the economy – not a genuine attempt to aid the economy.’