BUDGET NOTES - PUBLIC EQUITY
Today’s Budget was billed as a budget for growth. Did it live up to this so far as public companies are concerned?
The Chancellor reported the Office for Budget Responsibility’s assessment of the economy. Lower growth is forecast for 2011 and 2012, with inflation remaining above the 2% target until 2013. However, Government borrowing is still projected to fall as a proportion of GDP with the budget being in balance before the next election 2015.
This was the first Budget under the Government’s new approach to tax policy. This meant that many of the tax changes we heard about this afternoon were in fact announced last year. Draft legislation was then issued for consultation in December and this will form the bulk of the Finance Bill due to be published next week. Of course, there were some new announcements - many of which have been well trailed in the press in the last couple of weeks but, as always, there were a few surprises.