So we‘ve had our second budget in 2 months. The first one didn’t go too well as it cost both the chancellor and the PM their jobs, interest rates went up and the financial markets hated it. Let’s give away loads of money that we haven’t got and, if we work a little bit harder, we might just have it in a few years’ time. The sentiment may be ok, but in reality, was never going to be accepted. Us accountants are a cautious bunch and the mantra should have been, when we have the money then we can spend it. Seem sensible enough?
So, the budget, version 2, has now been delivered and is the complete opposite of version 1. Tax hikes for all instead of a giveaway. Funded projects rather than unfunded. Cut costs to meet income. Whatever your politics, it seems sensible that we should try to balance the books, reduce borrowing, pay back our debts and only spend what we have. You would do this with your household budget and GB PLC is not really that much different. Sort of!
You would need to generate more income if you want to spend more and that is what Mr Hunt and his colleagues are doing, albeit at our expense! We’ve already spent the money on COVID support and energy prices amongst others, and now we have to recoup this. I’m sure we would all like to see the NHS and other vital services get more cash, food banks are unnecessary and inflationary wage rises, but we don’t have a money tree and we can’t keep on borrowing excessively. Much of the cause of the economic stress is a worldwide problem rather than homegrown and sometimes we have very little influence or say in how it develops. The politics bit is how the government prioritise what the cash is spent on, and you would do the same, probably differently, based on your own priorities. We have to get back on track somehow, so let’s see if this works but we are all going to bear the brunt for now.
My point here is that times are going to be tough for all of us and there may be not a lot we can do about it. We have to manage our own circumstances as best we can. However, there is still plenty of opportunity out there, plenty of work and some fantastic ideas still to be thought of. Tough times often bring great innovation. Look how quickly the world developed a vaccine for COVID for instance. So can you be the next great innovator?
Do you have a concept that could benefit us all? Now is a good time as any to have a go. I and my colleagues at Harts would love to have a chat, (at no charge,) with you if you do. Please get in touch.