Starting a new business? Get 40% off our accountancy services for 3 months! 😀

x

A speech given by Labour’s shadow chancellor Ed Balls at Labour’s conference has outlined a new plan involving five actions designed to boost the UK’s economy.

The plan proposes to take the following actions: reducing VAT levels back to 17.5%; allowing small businesses to take a one year tax break on their National Insurance; creating new jobs by starting long term projects such as building new schools; using money from the taxing of bank bonuses to build affordable houses and provide jobs for young people and bringing VAT down by 5% on home improvements and repairs.

Labour has argued that these actions will boost the economy and, should the coalition make these movements, the labour party would be in full support. In addition, Mr Balls has claimed that Labour would not necessarily undo all of the actions already taken by the coalition however; they would create stricter spending rules and ensure that any unexpected earnings from the sale of bank shares would be used to repay the UK’s debt.

Mr Balls went on to confess that perhaps Labour did not do a perfect job with regards to how public money was spent, how immigration levels were regulated and how bank activity was monitored, but stated that nevertheless, the current government are not exactly dealing with the economic crisis particularly well.  He claimed that the spending cuts being made are damaging to the country’s chances of a recovery and the emphasis should be on how to balance helping the economy grow, with reducing the deficit already incurred, and focus should not be placed entirely on the latter.

However, the Conservatives have not responded positively to Labour’s ideas, claiming that the notion of a VAT reduction is ludicrous as firstly, it could not be funded and secondly, it would add over £12Bn to the country’s deficit this year. A spokesperson for the conservative government also claimed that Labour has purposefully cheated imposed fiscal rules in the past and therefore, the public should not trust the promises being made by them.

About The Author

Lee Murphy

MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.

More posts by this author
guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

Umbrella Companies for Self-Employed Contractors

When you set up in business as a contractor you might either work as a sole trader or as a limited company….

Read More

Get Ready for Small Business Saturday UK 2022

Small Business Saturday started in the US in 2010, on the first Saturday following Thanksgiving. It aims to encourage shoppers to consider…

Read More

Architects and Tax

Architecture is a highly diverse sector when it comes to tax. It’s partly down to the type of businesses that carry out…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?

Yes
No

Call us on 020 3355 4047 if you’re not sure.