Alastair Darling delivers electioneering Budget which is short on substance, says accountants James Cowper 
Thames Valley accountants James Cowper offers the following reaction and comment on today’s (24 March) Budget delivered by Alastair Darling.
Short on substance – big on track record
Alastair Darling today delivered a Budget that was big on track record and short on substance in a clear attempt to lure voters in advance of an imminent general election.
Ian Miles, partner and head of James Cowper’s Private Client team said: “It is perhaps not surprising that Darling shied away from delivering a meaningful and solid Budget with an election so close. A large chunk of the Budget was purely trumpeting the government’s track record – which many will question – and perhaps offers a taste of the election race that is about to begin.”
A step onto the property ladder
Ian adds: “Help for first time buyers in the form of doubling the Stamp Duty threshold is welcome, but is unlikely to stimulate the property market in any meaningful way.
“If the government were serious in its offer of help to house buyers it would extend the Stamp Duty break to those making their second or third move as well. The lending cushion given to prospective buyers by steadily increasing house prices in recent years has all but disappeared and those wishing to move up the property ladder will not find it any easier following today's Budget.”
No longer rosie for cider
Alastair Darling announced today a massive tax hike on cider – 10 pc above inflation increases from Sunday 28 March. It is no coincidence that this big tax increase is matched with an increase in the popularity of cider over recent years.
Ian offers this advice to those living in the traditional cider strong hold of the West Country: “Stock up on cider now before Darling upsets the apple cart. I love my holidays in Devon and a pint of cider in the local, but I guess Darling may wish to reconsider any holiday plans in the West Country this year.”
A tax on jobs
Chris Lee, partner at James Cowper said: “The measures announced to help small businesses – the reduction in business rates, the increased investment allowance and entrepreneurs relief – are all welcome and will undoubtedly help businesses. But they are all overshadowed by the planned hike in National Insurance rates from April 2011, which affects all businesses and is, quite simply, a tax on jobs.”
Quite possibly the greatest Budget moment ever
And finally.... Alastair Darling’s announcement of the tax information exchange agreement with, amongst others, Belize delivered what has to be one of the greatest Budget moments ever.
Ian adds: “The Budget rarely creates moments of such great theatre, but this direct attack on the Conservative Party and Lord Ashcroft delivered one such moment. It is perhaps all this Budget can be remembered for.”
Ian Miles, Partner, James Cowper LLP, Tel: +44 (0)1491 848500 or email imiles@jamescowper.co.uk
24.03.10