Dismantling the Budget 9: Help for Businesses
by Part nine of deconsrutcting the budget, looking at Alastair Darling’s plan for the British economy. In this section I will be looking at plans to help small businesses.
• Help for loss-making companies extended – they will be able to reclaim more taxes paid in the last three years until November 2010
Banks get bailed out, companies can claim back some of their tax. Aside from the obvious and frankly sickening double standard, this isn’t going to do much good. Okay, extra money allows companies to invest, but if a company is making a loss, it needs more than claiming back some tax. This may be down to the CEOs more than the government, but if society and the economy as a whole have rendered a company unable to make a profit, then letting them claim back a little money is only going to prolong their death throes.
• Businesses’ main capital allowance rate doubled to 40%
Again, helping businesses collect capital and set up is not going to help if people just aren’t buying the products. Giving businesses the means to expand is one thing, giving them the motivation and the reason when companies are popping left right and centre is another entirely.
• New £750m strategic investment fund to help emerging technologies and regionally important sectors.
Emerging technologies and regionally important sectors. Is it just me or does this seem a little vague? What is emerging technology? Regionally important sectors makes more sense, I’m assuming it means manufacturing and primary industry such as farming which are common in rural areas. These industries have been hit hard by the recession, and extra money to help them out would be well… helpful. The problem is that in many areas, these industries where suffering BEFORE the recession even began. The problem runs deeper than money.
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