The smoke that thunders (plus the mirrors)
That is the name of the great waterfall on the Zambezi River before it was called the Victoria Falls. It was a good description of the Chancellor’s performance yesterday with its concluding coup de théâtre.
Beyond the headlines, there were two really bizarre announcements. Taxes on small businesses have risen yet again, thus acting as a disincentive to start up businesses. The Chancellor’s reliefs on capital investment in small companies will not apply to the creative and knowledge based acorn businesses. Also, at a time when energy security is an increasing problem, yet another consultation has been launched on offshore oil and gas taxation, rather than an actual tax cut which applies to other businesses. The warnings from the industry have been ignored.
Once again, micro-management, despite the major income tax realignment, characterised this Budget. A future Chancellor will have to disentangle the accumulated webs of complication which have been such a beanfeast for lawyers, accountants and tax advisers.