It is reported that the Federation of Small Businesses has written to the Chancellor ahead of the Budget. It is calling for measures to boost the economy. Apparently they have asked for an upgrade to the employment allowance. They also propose an increase in the VAT threshold (as reported by us in our 17th January News flash). The arguement is that personal tax cuts are meaningless without measures to sustain jobs and hours. They also suggest reintroducing tax-free shopping for overseas visitors. This, they believe, could bring in an additional £10bn in annual spending. The FSB wants the budget to focus on raising living standards and securing a strong economic future.
BFS Comment:
The FSB are, of course, right in calling for measures that will boost the economy. Whilst a buoyant service economy is always to be encouraged and applauded, measures are needed that encourage the growth of our manufacturing base. As well as generating employment, this will have two other benefits. These are increasing our export earnings whilst hopefully reducing the level of imports. We urgently need to reduce the current trade imbalance.
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