Many individuals including myself were disappointed with the Pre Budget delivery yesterday. I had hoped that the chancellor would have grasped the nettle and addressed the burning issues such as the actual poor state of the public finances, Public sector Pay, Helping small businesses, boosting saving and investments and getting the banks to be realistic about lending to businesses. Like most individuals I agree that we need to have a combination of tax gains combined with expenditure cuts. The old statement from the government is that immediate spending cuts would hurt business and hamper the recovery. My view is that although sweeping 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 sway the boat too much prior to an election. The effect of spiralling public borrowing can be seen when you look at the Irish Economic System. The once Celtic tiger has had its claws removed. Actual cuts in wages are a reality along with strong measures to reduce public borrowing. I nearly choked on my dinner last night, whilst watching the six o clock news. A Public sector employee was complaining about a cap on salary increases of 1%. I would much rather be it that situation, as opposed to working for the Public sectors in Eire. Many small business organisations have actually taken pay cuts in the last year, due to the recession. As ifa’s we offer a small business advice service to our clients on a daily basis. I would have to see a more fundamental approach to supporting small businesses as they are an important part of the economy.
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