Well, it’s a step in the right direction. Any rate cut for the entrepreneur is. But it’s the type of entrepreneur that will benefit which bugs me. This u-turn will benefit small businesses making gains of £1 million or less. Now, to average Joe £1 million sounds like a lot of money. But you and I both know that it’s just a drop in the ocean.
The real wealth and job creators, those selling their assets for a lot more, say £10 million, £20 million, £100 million plus – those that really drive this economy of ours – will be seriously clobbered. Where’s the incentive for people like you and me, those that make a real difference to the economy…drive the economy even!? Down the tubes, that’s where.
And what about people in the property market who make substantial gains…where’s the incentive for them? They will still be paying 18% instead of the 10% for the smaller investor.
Darling says that the concession, which will be available to investors with a minimum 5% stake in a business would cost the treasury £200 million each year. But won’t it cost a lot more in terms of the loss of investment in Britain, and a lack of incentive for people like you and me to continue to make serious money for this economy? Come on Mr. Darling – use your head and think outside of that red box – or the budget briefcase as it’s more widely known.
Of course, the Federation of Small Businesses (FSB) which proposed a rate of 9% up to £750,000 welcomed these reforms even though it feels its members’ trust in the government has been compromised. They would do, because it’s the small businesses, and only the small businesses, which will benefit. And of course if you start small, you keep thinking small and you stay small. That’s not what you or I are about.
And of course, as always, there’s a flipside. Average Joe will be paying 20% income tax while the likes of you and I – the serious investor – will be paying 18% or in some cases 10%. And some second home owners will even be paying as little as 6%. But it’s Average Joe who benefit from a strong and stable economy. And how do we get a strong, stable economy? By those that drive it. And so it goes on….
So, come on Darling, can we kiss some of these silly changes goodbye one last time??”