Expert's concern about budget
PENSIONERS and families with children are likely to be the biggest beneficiaries of the latest budget, a top financial analyst said today.Yvonne Graham, tax manager at accounting firm Ensors, said the two groups got the best news out of any sections of society and added that much of the remaining content simply amounted to “tweaking”.
PENSIONERS and families with children are likely to be the biggest beneficiaries of the latest budget, a top financial analyst said today.
Yvonne Graham, tax manager at accounting firm Ensors, said the two groups got the best news out of any sections of society and added that much of the remaining content simply amounted to “tweaking”.
She also claimed the unexpected cut in income tax by 2p in the pound will mean the lowest earners see even less money in their pay packet.
According to Mrs Graham the shock cut combined with the abolition of the 10 per cent lowest rate of income tax will mean people on £15,000 or less a year could pay the same or even more in tax while higher earners benefit from the changes.
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She said: “All these little tweaky measures don't amount to a huge deal.
“He (Mr Brown) said it was a budget for families and the increase in working tax credit will be very welcome for them.
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“He is saying everything is going so well under his leadership over the last ten years and he can afford to give more money to families and make things better for pensioners.
“However the income tax changes seem to offer breaks to higher earners at the expense of the lowest earners.
“For a socialist government they seem to be redistributing the wealth the wrong way.”
She added that small businesses in Suffolk could suffer from changes to corporation tax.
The cut in corporation tax only applies to companies making more than £1.5million in profit so the average small company will be worse off.
She said: “They (small businesses) will find they are paying more in corporation tax.
“Big companies will be profiting but average size businesses in Ipswich and Suffolk probably don't make profits anywhere near the level of £1.5million.”
Mrs Graham also believes an unintended victim of the environmentally-motivated decision to hike excise duty on “gas guzzling” vehicles could be the region's farmers.
She said an increase in annual duty to £300 this year and £400 next year is unlikely to put off people who are willing to spend £30,000 or more on a so-called “Chelsea tractor” but will affect those who can ill-afford the extra money.
She said: “Farmers and other groups of people need to use these vehicles and the extra cost for them will make a big difference.
“Farmers are very hard up against it.
“They don't have a choice.
“It is not as thought they can drive a Smart car around a ploughed field.”
Mrs Graham added that her overriding impression was that yesterday's budget was intended by Gordon brown to pave the way for him to take on the top job when Tony Blair steps down.
She said: “My overall impression was that it is his last budget and he wanted to appear to send out some good news.
“I believe he is thinking more as Prime Minister than Chancellor of the Exchequer and is setting the scene for the future - preparing the ground for government and business investment.