Articles in the Economy Category

Economy, Taxes »

[23 Jun 2010 | Comments Off | ]

The first thing that struck me about yesterday’s budget speech was the ties. The shimmery bluey-green of Osbourne’s effort and the blue and yellow of Cameron and Clegg. Wow, what a change from the normal dull red efforts that we have seen for the past 13 years. Perhaps the fashionista broom really does sweep clean. But how would the coalition policy broom do?
Well, what the Chancellor had to do was to persuade all of us that the epic reconstruction job that he has started on the UK economy was worthwhile …

Economy »

[13 May 2010 | Comments Off | ]

Since the politicking has ceased (momentarily) and we now know the shape of our new Government, we also know a bit more about how the coalition views the tax regime and therefore the possible changes to tax policy that may be included in the emergency Budget within 50 days.
These might include:

A substantial increase in the rate of capital gains tax on non-business assets to marginal rates of tax which could therefore be 40% or 50% rather than 18%. Apparently, there will be “generous exceptions for entrepreneurial activities”.
A large increase in …

Economy, Taxes »

[25 Mar 2010 | 4,789 Comments | ]

Well, that was exciting wasn’t it?┬áInstead of the normal pre-election bribery, this time we had a bunch of IOU’s being spread around like an over-used library card. As a politicking exercise it was pretty bland with Darling using his time at the despatch box to set out the rationale for the Labour economic policy for the election.
For all we know, this budget may last only as far as the election date plus 50 days – and that’s not long. And while it was a statement that was rather short of …

Economy »

[5 Mar 2010 | Comments Off | ]

Boom and bust. Despite the wishes of well intentioned but out-of-their-depth politicians, it will always be with us.
Share prices overreach themselves until the time when the reaction sets in, then the bears turn up and drive stock markets too low. It’s the same with property prices, energy costs and all commodities.
A similar cycle affects many businesses.
The sensible reaction when the the current downturn hit was for businesses to cut costs – recruitment & training put on hold, perhaps some thinning of the workforce, advertising and marketing initiatives cut, cash conserved …

Economy »

[23 Feb 2010 | Comments Off | ]

Yesterday brought us the news that the UK has just about crawled out of recession – or rather, out of the technical definition of it, although the output of the UK economy in the final quarter of 2009 was the same as it had been in the third quarter of 2005 – so over four years of growth have evaporated.
Growth in the UK usually averages 2.4 per cent annually so we are now over 10 per cent behind where we would have been if the country had achieved no more …

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