Accountants Split About Balls' Call for Budget Tax Cuts
MEMBERS OF the UK200 Group of accountancy and lawyer firms, have given a mixed reaction to suggestions by shadow chancellor Ed Balls that next month's Budget should include a cut in VAT and a three pence cut in income tax for a year, in an effort to boost economic growth.
David Ingall, of JWPCreers, said a VAT cut would cut the cost of living, but also said that "slashing red tape" was probably more important than tax cuts.Ian Abrey, partner at Hillier Hopkins, said the suggested tax cuts might not boost consumer spending and economic growth
"Mr Balls does not say what the total cost of the proposed measures would be and there is no guarantee that the windfall would find its way into consumer spending to give the UK economy a nudge in the right direction," he said.
Andrew Watkin, of Baker Watkin, said raising the tax-free personal allowance to £10,000 per year was a good idea "as those who are not so well off will see a long term permanent increase in their income, whereas a reduction in VAT would only be temporary".
The UK200Group is an association of chartered accountancy firms and law firms, with over 150 offices in the UK and 50 member firms worldwide.
- Mechanic Ordered to Pay Back £208k with Respect to a Tax Fraud
- Large Businesses Tax underpayments increases by 13% to £25bn
- OECD Releases Compliance Ratings on Tax Transparency
- LITRG urges to Act Fast on Missed Tax Credit Renewals
- Legal and Accounting Businesses Contribute £15.5bn in Taxes for UK Treasury
- Chinese Football Association Introduces Rule of 100% tax on Signings of Foreign Players
- Barcelona striker Lionel Messi losses his tax Fraud conviction appeal