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Wednesday, 19 May 2010

Emergency Budget

Dr Brian Sloan, Head of Business & Economic Policy at Greater Manchester Chamber.

The Chancellor has announced that the promised Emergency Budget to be held within 50 days of forming the new Government will be on 22nd June. However before that, this coming Monday he will announce the first £6bn of public sector spending cuts. Rumours are rife as to what will be included; though a brief list of likely areas was outlined in a Treasury press notice. Ken Clarke explained to the Chamber during his Election campaign visit that any cuts would be carefully thought through and timed to avoid undermining the recovery.

We hope that his colleagues are like minded and that the ‘Building Schools for the Future’ is not an early casualty of the deficit reduction plan. The construction industry as a sector re-entered recession in Quarter 1 this year and across Greater Manchester construction businesses are reliant on projects such as this to get through the downturn.

With the Emergency Budget in mind the Chamber is proposing to submit a letter outlining the policies that we want to see put in place. If implemented, how will a reduction in corporation tax rates impact on your business? Corporation tax rate reductions would be tax neutral so rates and reliefs would be abolished to pay for these. Would capital gains tax increases on non-business assets impact on other aspects of your business model? Would another change in VAT rates be a cost to your business or impact on your sales? Have your say by e-mailing me by clicking here before 28th May. We are here to represent the views of our members.

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