PCG, the contractor group, has responded positively to the Emergency Budget delivered yesterday by the Chancellor, George Osborne. Speaking after the speech was delivered, managing director of PCG, John Brazier commented: “George Osborne delivered an intelligent and decisive Budget which has tried to tackle the historical deficit this country faces. He stated he wanted to create certainty and stability and we believe that many of his measures will do this. The roadmap for corporation tax and the laying out of income tax changes over the course of the Parliament are welcome and will help PCG members in their businesses.”
It was also welcome news to PCG, and all contractors, that the budget Red Book reiterated the commitment of this government to reviewing the IR35 tax rule. However, the group is concerned about the guaranteed public spending cuts which will become clearer when the spending review is published on the 20th October 2010.
PCG Head of Public Affairs, Simon McVicker, said: ”We will only really know the severity of these public sector cuts when the spending review is completed in October but many public sector contracts may end due these cuts and at least in the short term Government contracts will be severely limited.”
Also commenting on the new Budget, Anne Redston from King’s College London gave her views to Shout 99. The Visiting Professor of Taxation stated: “This Budget has left freelancers and contractors relatively unscathed on the tax front. The promise of a small business review has been firmed up, and the Office of Tax Simplification is long overdue. In this Budget the Government has set out the big picture; now they can start colouring in the details.”