Inspire's Budget Analysis

The Chancellor, Gordon Brown, has this afternoon delivered what is expected to be his last Budget report.

Coincidentally this was his eleventh budget report before he hopes to move from number 11 to number 10!

Mr Brown said of his eleventh Budget that it was one for "prosperity and fairness for Britain's families". In my opinion it is fair to say that the budget statement was fair more radical than any commentator would have expected with significant changes to corporation tax, income tax and national insurance.

Unfortunately many headline grabbing changes and tax incentives given in one hand are, when you look behind them, taken away with the other. A good example of this is the increase in the amount at which higher rate income tax rate is payable but on the other hand this benefit is mitigated for most higher rate earners with additional national insurance being payable. In addition many of the tax incentives being given will not come into effect until at least 2008. It will be interesting to analyse the cash flow effect of when the increased tax reliefs and allowances come into effect compared to when some of the increases in taxes will be due.

For businesses there are going to be some significant changes to corporation tax and also the capital allowances regime. In particular the changes and simplifications to the capital allowances regime are long overdue.