- 19 May
Tough Measures Ahead To Balance The UKs Budget
Now the the UK has the stability of a Conservative Liberal Democrat coalition government in place the role of the new government has turned to taking action to sort out the disasterous state of the UK's finances. This will undoubtedly mean tough measures to balance the public finance. There has already been talk of a hike in VAT from 17.5% up to 20%. This will boost revenue to the exchequer but is likely to have a negative effect on high street sales which will in turn filiter up the chain to the distributors and manufacturers.
There are also likely to be sweeping cuts in public spending over the coming months which will reduce the volume of public sector money being earnt by businesses in the private sector, again creating further issues for UK businesses.
Unfortunately, given the state of the public finances there are no alternative options but the effects of this will be felt throughout the business world, even where there is no direct dealing with government bodies. It is a little known fact that where businesses are dealing with government bodies they can access 100% funding against their sales invoices.