With the budget announced this week, debate has raged about how realistic or helpful this really is to the current situation in the UK. From the outset, George Osbourne has hung his hat on the fact that growth in the private sector is the key driver to the UK coming out of this recession quickly and successfully. The idea being that this growth will offer more employment, more jobs, more company profits and therefore more tax being paid into the Treasury. With this money we can claw back the deficit.
Personally, you have to be optimistic about the future – otherwise what’s the point of doing anything! Therefore you can see the logic in GC’s predictions/ hopes but it’s still a risk. If we don’t get this growth, the Treasury will not receive the money it hoped and we will struggle to pay back the deficit. This would result in one thing – more taxes!! Then we are in real trouble as everything would undoubtedly hit rock bottom.
The budget has been aimed at getting businesses working for growth and this is a medium term goal. So short-term I don’t see a huge amount of help coming from this budget (the petrol duty won’t make any realistic difference in real terms when you look at inflation rates) but it should help to raise the optimism in the private sector and that in itself is an important factor in success.
See this article for details on how the budget is aimed at business growth – https://bit.ly/eBCmBJ
From a recruitment point of view, using my knowledge from the Herts/ Bucks finance market, there are jobs around. Companies have vacancies to fill and, although a cautious (and sometimes slow) approach is being taken to get good quality people on board, there is the need for new staff. The transaction finance market admittedly seems a little flat but has picked up in the last few weeks, the part qualified market is moving reasonably well and the Qualified market is pretty strong with the usual fight for Newly Qualified to 3 yrs PQE types!
The Blue Chip/ Corporates are recruiting regularly so if we can get the SMEs some easier finance to push expansion then there are good reasons to be optimistic and believe in GC’s approach.
Let’s hope it works!