George Osborne plans Budget for July 8th

Wednesday 20 May 2015

Chancellor George Osborne has announced that a second Budget for 2015 will be unveiled this summer, on Wednesday July 8th.

Speaking to reporters outside 11 Downing Street, Mr Osborne told the BBC that he wanted to deliver the second Budget in one year because he didn't want to wait for the Conservatives to be able to deliver on some of their manifesto pledges that they made with a focus on working people. He said that this second Budget would have “a laser-like focus” on raising productivity and living standards. This could be beneficial to limited company contractors and umbrella company contractors.

The Budget is expected to strike a balance between the Conservative Party's manifesto, the £57 billion budget deficit in the UK and the £12 billion cuts expected to hit welfare.

The Labour Party has said that the chancellor should set out who will be paying for some of the promises, which it says are uncosted, made in the Conservatives' election campaign.uncosted, made in the Conservatives' election campaign.uncosted, made in the Conservatives' election campaign.uncosted, made in the Conservatives' election campaign.

Mr Osborne gave a broad outline to reporters of what his plans are for the upcoming Budget but would not give more specific details.

In an article for The Sun, Mr Osborne confessed that it was “unusual” for two Budgets to be presented in the same year but said that he wanted to turn “promises made in the election into a reality.” He did not explain how the Conservatives would fulfil a pledge to cut £12 billion in public spending but said that he wanted to make it “fair” for people that pay for it.

It is thought that Mr Osborne will make advances with his proposals to deal with tax avoidance. He said that the government would be cracking down on tax avoidance and tax planning so that everyone pays a fair share.

Mr Osborne also said that the government intends to help businesses create jobs in the UK, so that a move can be made towards full employment. He said that the UK produces a quarter less for each hour worked compared to countries like the US or Germany. Therefore, he said that increasing productivity should be a big challenge for the next five years.

It seems that prioritising the reduction of the deficit through use of spending cuts rather than tax rises is of interest to certain groups of small and medium-sized enterprises. This was shown in a recent survey by the Institute of Directors of 1,211 of its members, many of whom are SMEs. It reported that 85 per cent would like to see a budget surplus by the end of this parliament.

By Victoria McDonnell

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