What would accountants like to see in the Budget?

Accountants may be interested to learn that Ed Balls, is calling on George Osborne to cut taxes when he delivers his budget statement next month.

The Shadow Chancellor believes that cutting tax will boost UK growth. Mr Balls would like to see a reduction in the rate of VAT, which currently stands at 20%. He also suggests cutting income tax by 3p for a year, speeding up the planned increase in the personal allowance to £10,000 as well as higher tax credits. He said that without a cut in tax, the UK’s prosperity could be permanently dented.

The Tories have consistently blamed Labour for the current financial mess saying they borrowed excessively and ran up too much debt. But Mr Balls says the current austerity measures are proving to be self-defeating and George Osborne now claims credit rating agencies have trapped him.

The shadow chancellor favours a reduction in the VAT rate as it is a tax on sales as opposed to a tax on income and because VAT affects all of us, it’s the fastest and fairest method to boost the economy.

George Osborne will deliver the budget on March 21st. Not surprisingly business leaders are calling on him to tackle unemployment and encourage job creation as well as making more help available for small businesses and reducing red tape.

The Institute of Directors would like to see the chancellor scrap the 50p tax rate. The PM and Osborne have both said that the top rate is a temporary measure and the IoD believes it is damaging our economy. However, we are unlikely to see the Chancellor abolish it this year,

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