11/05/2015 by David Gibbens, Director, Poole Waterfield
As the dust finally settles on the general election results and David Cameron puts the finishing touches to the composition of his government, the business community will now turn its attention to what a conservative administration will mean.
The conservatives won a mandate on the back of a commitment to balancing the books and managing the economy, but during the campaign various pledges were made which will now limit what David Cameron and his chancellor George Osborne can do. The prime minister was clear in his ruling out any increases to VAT, Income Tax or National Insurance and also in committing to increasing the personal allowance to £12,500 and the 40p rate threshold to £50,000.
These policies will be welcomed by many, but they do add to the question of how the deficit will be tackled. There will naturally be cuts to public spending, although definitive plans for these have yet to be disclosed, and throughout the campaign there was a big emphasis on helping business, encouraging technology, developing a “Northern Powerhouse” and investing in the infrastructure that would help the economy grow. This all suggests that a combination of reduced spending and economic growth will be the cornerstones for further recovery. It will be interesting to see how these policies are implemented over this parliament and what they will mean for businesses across the country. There seems a clear message that the chancellor wants to see a less “London centric” economy and this surely would be welcomed by the country as a whole if he achieves that.
One other theme that was almost universal across the parties was a growing intolerance of tax evasion and avoidance. Part of the new government’s plans will surely be to make progress with this very problematic and contentious issue. Again, it will be interesting to see how far they are prepared to go and what tax reforms they will be willing to make. Whether this parliament does see a crack down on tax evasion and finally sees the end of tax schemes is one for the future, but it clearly is a good time to look at your tax affairs carefully.
Remember that there are sensible, legal and legitimate tax reliefs available to many businesses and individuals and Poole Waterfield offer a free initial consultation to establish whether there are ways in which you can improve your or your business’s tax position. Please call us on 01384 455505.
Category: Latest News Author: David Gibbens, Director, Poole Waterfield