Just Until Payday

Many individuals including myself were let down with the Pre Budget delivery yesterday. I had hoped that the chancellor would have grasped the nettle and tackle burning issues such as the current poor state of the public finances, Public sector Pay, Helping small businesses, supporting saving and investments and getting the banking concerns to be realistic about lending to businesses. Like most individuals I agree that we need to have a combination of tax increases combined with spending cuts. The old line from the government is that direct spending cuts would harm business and hinder the recovery. My view is that although wholesale rapid cuts could cause a problem, the timescales suggested are just too slow. It seems that the Chancellor is just fiddling around the edges of reform and does not want to tilt the boat too much prior to an election. The effect of spiralling public borrowing can be seen when you look at the Irish Economy. The once Celtic tiger has had its claws removed. Actual cuts in earnings are a realism along with drastic measures to reduce public borrowing. I nearly gagged on my tea last night, whilst watching the six o clock news. Public sector employees were whinning about a cap on salary increases of 1%. I would much rather be it that position, as opposed to working for the Public sectors in Eire. Many small business enterprises have actually taken pay cuts in the last year, due to the recession. As independent financial advisers we offer a range of advice to small businesses on a daily basis. I would have loved to see a more radical approach to supporting small businesses as they are an essential part of the economy.