From the Partners
Initial reactions to the Budget
Tax Partner, Martin Gurney, described the Budget as “relatively neutral” and “designed to redress deficits without further destabilisation”.
Nicola Goldsmith, Head of Private Client, suggested it was a “redelivered Budget [...] designed to help soothe the markets and strengthen the pound”.
This was echoed from our experts across the UK, including Ian Haynes, Tax Director for Haines Watts Scotland. He argued that the announcement was really just a case of “dotting the i’s and crossing the t’s”, with most of the detail leaked or confirmed in advance.
However, there are some concerns about the lack of long-term strategy. David Fort, Partner at Haines Watts Manchester, described the latest Budget as a “knee-jerk response”.
“They seem to be floating ideas to see what reaction that they get. I know some of the things that were put out there over the last couple of weeks have now disappeared off the agenda because there was pushback from businesses,” he said.
Martin explains that while the overall plan appears to be sound commercial strategy, the Chancellor cannot further destabilise the economy with very significant tax increases or spending cuts. Instead we’re seeing freezes, which Nicola describes as “fiscal drag”.