OK, so perhaps it was more of a ’Statement’ than a Budget, and cynicism that it would be a wolf in sheep’s were unfounded. Changes to ISAs are going out for consultation, perhaps a lesson learned from the actual Budget changes to IHT and much else. The line is that they will be simplified, one that, sorry, the cynic is back, we have heard many times about pensions. So we’ll see. They do seem to expect that the changes to the IHT regime, effective from next year and the year after, will raise some £2.5bn and yet another crackdown on evasion and avoidance another £1bn, but to put that in context, the two together would keep the NHS going for just 8 days.
The pensions news was all about unlocking investment into UK companies to boost growth; in a way not our problem or opportunity, as we’re unlikely to recommend a fund soley investing in go-getter new companies to most who want a bit but not too much risk. My conclusion, she/they will need to raise a lot more or cut a lot more, and George O. proved that the latter does not do the trick. So income tax will need to go up before the end-of, is my Paddy Power for today. And the hope, I guess, is that we’ll all be feeling enough growth not to notice.
