Emergency budget – are you ready?

With the new Government starting its first 100 days in office, the half way milestone is the “Emergency Budget” which is scheduled for 22 June. As Government Ministers move from Opposition to Government and assume the reality of their portfolios we are evidencing some proposed changes that were not heralded during the General Election campaign.

The Government has agreed that tackling the deficit and public debt is a priority and has confirmed what we all know and that is that taxes will increase and expenditure reduce. While reducing public expenditure will have an impact on the cash flowing into the UK economy increasing taxes will have the opposite effect. Combined, the impact of these two measures must inevitably result in an increasingly challenging economy.

Officially, Government debt is currently approaching £900 billion and forecast (at the March Budget) to go to £1,400 in 2014/15. An examination of the books since the Election shows that debt may already be in excess of £2 trillion if liabilities for Private Finance Initiative and public pensions are included.

While there may be planning opportunities prior to the June Budget, there are almost certain to be changes in the Budget that will require us all to adjust our plans. If you wish to discuss any aspect of your planning, particularly regarding any capital gains tax planning, do please contact us.

Tags: Capital gains tax (CGT), David Cameron, George Osborne, Government

This entry was posted on Friday, June 11th, 2010 at 12:25 pm by Paul Beare and is filed under UK accounting. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.