Yesterday’s budget was in many ways a bit of a non-event. It was described by the Chancellor himself as “neutral” and by critics as boring.
I suppose if everything was fine and going the way he wanted it there wouldn’t be a need to change anything so we would expect nothing to happen.
Of course, everything isn’t fine. But the Chancellor believes he’s hitting his targets to put things right and with the economy under pressure from all directions there was never going to be much wriggle room.
The changes he has made are not huge. As CBF board member Denise Lovering told Wales Today last night, reductions in corporation tax are welcomed by businesses making a profit.
Cutting the top tax rate from 50p to 45p may be welcomed by some though I’ll leave it to the economists to argue about whether or not the wealthiest people are better off.
A couple of interesting points were raised; I’m pleased to see the electrification of the Valleys Lines is still on the agenda but whether or not in will be viable when the Westminster government works with the Welsh Assembly on this project remains to be seen. We need to know where the money’s coming from.
And the review by Michael Heseltine of how government can work better with the private sector may produce some interesting ideas, though it must be said that in Caerphilly we’re currently doing a pretty good job of that.
A lot of people, however, particularly those in beleaguered corners of the economy, were left disappointed by what wasn’t in the budget.
The lack of improvements planned for our major roads was picked up by several business organisations. And Denise Lovering also pointed out what many businesses felt that the freeze on fuel duty for hauliers wasn’t enough.
Sometimes no news isn’t good news but it’s probably no more and no less than was expected.
Andrew Diplock
Chairman, Caerphilly Business Forum
For more information about Caerphilly Business Forum and its events call 029 2125 1395 or email Natalie@cbforum.co.uk