Transport, tax and austerity on Budget menu

TARGETED tax cuts, welfare spending reductions and measures to enable the Northern Powerhouse concept to become a reality, are expected in George Osborne’s summer budget.

Just four months after his last Budget, but significantly his first in a Conservative Government, George Osborne will warn that tackling the country’s deficit still remains his number one priority.

Speaking on Tuesday night, he said the continuing political and economic crisis in Greece vindicates his austerity programme to clear Britain’s deficit by 2018.

“Our long-term economic plan is working. But the greatest mistake this country could make would be to think all our problems are solved. You only have to look at the crisis unfolding in Greece to realise that if a country is not in control of its borrowing, the borrowing takes control of the country.”  

Don’t miss our Budget coverage, in association with DSG Accountants, this afternoon.

New rules on Sunday trading, raising productivity, particularly in northern cities and addressing transport issues which were brought into focus when the Trans-Pennine Rail electrification project was halted two weeks ago due to performance problems in Network Rail, are also likely to be addressed.

Topping the budget wishlists of many North West business leaders is the issue of transport.

Mike Perls, chair of the Institute of Directors said: “With the recent announcement delaying the electrification of the Manchester to Leeds train line, we now need to see a clear signal of intent towards the Northern Powerhouse programme from the government.

“Creating a single talent pool across the Northern economy through stronger connectivity will be a key driver of productivity increases in the region and will help enable the benefits of regional devolution to be fully realised.”

He added: “We believe the focus for the next five years must be on building an entrepreneurial and dynamic economy that not only creates wealth but spreads it as widely as possible.”

Transport, skills and tax are the two key issues for the Manchester Society of Chartered Accountants president Colin Gillespie, who said: “We hope that the Budget contains positive news regarding the plans for the electrification of the TransPennine railway line following the recent pause in progress.

“We would also like to see George Osborne really addressing the skills gap, especially training and apprenticeships for 16-24 year olds. He should also encourage a step change in education and business collaboration, and move to encourage the exploitation in the UK of great research discoveries made here, such as graphene by the University of Manchester.

“We call again for reform of one of the most complex tax systems in the world which undermines business confidence. We want the Chancellor to make tax simple, certain and consistent. “