Experts say that Philip Hammond’s Budget 2018 that will be announced next week will have far-reaching impact on public opinion about the Tories. The Federation of Small Businesses (FSB) has urged the chancellor to ensure that the budget is pro-business so that it has a positive impact on the economy.
According to FSB’s Mike Cherry, the chancellor has used warm words for businesses in the past such as his statement this month that Torie’s will be ‘the party of the business. He must now make true his words in the Budget 2018.
The chancellor has now the opportunity to show whether he really does favour interests of businesses. This will also allow him to make amends with the self-employed community after he had caused an uproar by deciding to end Class II National Insurance Contributions (NICs). The decision had robbed the self-employed whose annual income was above £6,205 of critical benefits such as the State Pension.
Many contractors who work through their Personal Service Companies (PSCs) have shown pessimism regarding the Budget 2018. They expect additional taxes particularly in the form of IR35 reform.
The new chair of the Treasury Select Committee, Nicky Morgen, has suggested that some firms will feel that the Government has played a game with them. The Torie MP has admitted that the party traditionally been regarded as pro-business has created a lot of uncertainty for the sector.
Torie seems to have taken a U-turn when it comes to supporting the business community. One Torie MP had stated ‘F**ck Business’ when asked about UK firms’ Brexit concerns. Mr. Morgan admitted that he was deeply annoyed at the statement and that it’s tot tally unforgivable for a party that should be supporting wealth creators and entrepreneurs.
Tories Last Chance for Redemption
With the ominous cloud of the Budget 2018 approaching, the chancellor has a chance to redeem his party’s position. By making the budget pro-business he can be able to get a buy-in from one of the biggest supporters of the party — the businessmen.
In case the chancellor goes against the wishes of the business community, the voters could punish his party in the next election.
According to Sunday Times, Ian Howie, if the chancellor decides that the Government needs more money than the public, he should better brace himself to face the music from his shadow chancellor Ed Balls. The public won’t accept anything less than a pro-business Budget next week.