UK Budget 2009
ACCA's head of taxation responds
ACCA responds to the measures announced by UK Chancellor Alistair Darling in the UK Budget on 22 April 2009
'There are few giveaways in this Budget from the UK Government because there has been little room for manoeuvre,' said Chas Roy-Chowdhury, ACCA head of taxation. 'The surprising tax rate of 50% for those earning £150,000 or more goes against the earlier election promise made by the UK Government, unless an election happens before April 2010.
'This is indeed a Budget for serious times, where many key measures had already been leaked to test the reaction. If the UK Government wishes to make the fiscal stimulus work, then it needs to stop talking about tax increases.
'While tax rises have been brought forward in order to balance the books, it does nothing to encourage spending. We have already seen this by way of people using surplus cash to pay down their mortgages. The worst of the downturn may now be over, so let's make sure the economy does not just bounce along the bottom with the UK Government paying negative lip service to taxpayers on the future direction of tax.'