FX Finance Fitness Column #3
By admin
Issued on behalf of FinanceXchange
FOR a man who rarely stretches to a smile, Gordon Brown became fond in his 10 years in tenure as Chancellor of one particular moment of mirth. It proved to be his favourite joke and went like this: ‘There are two kinds of Chancellor – those whose careers end in failure and those who get out in time.’ The joke was always delivered in the typical dead pan manner of this dour, serious-minded son of a Scottish church minister, but never failed to amuse his audience. And, the joke-teller always saw the funny side of it, too.
Interestingly, the longest-serving Chancellor of all time may be about to prove himself right as he leaves 11 Downing Street for the even bigger job next door. With inflation looking more and more difficult to control and interest rates set to rise again this summer, the economy suddenly has that look of a loose cannon. That, of course, is worrying for business and it will be interesting to see over the coming months just how much of an influence on the economy and the new keeper of his old job Gordon Brown will have as Prime Minister.
During her term as Chancellor, Brown was kept in check and neatly balanced by Tony Blair’s right-of-middle political tendencies. Left to his own devices, the new PM will now have free rein to introduce the sort of policies befitting his more left-wing and socially-concerned natural political style. You can bet your bottom dollar he won’t be able to resist meddling in the money matters of the new man (or woman) next door!
That is of concern for anyone in business, particularly anyone considering setting up and running a successful business. If we are to continue with the Brown style of fiscal policy in which business and Britain’s entrepreneurs are taxed into oblivion – and the danger is that style could, in fact, be accelerated – then we are in for a sorry time indeed.
Small and medium-sized businesses, in particular, should be very wary of what could come from the Brown Premiership. His parting Budget was a slap in the face for all those hard-working businessmen and women who are now paying higher Corporation Tax on profits, while their personal earnings were also hit with the move to make it more difficult for company directors to take part of their earnings through a dividend taxed at a lower rate.
The jury is out on what Brown the Prime Minister will do for business in Britain. But if his track record as a grasping Chancellor is anything to go by then we could all be in for a bumpy ride ahead. The message to business is clearly – hold on tight!
The FinanceXchange Group was founded almost three years ago with a business base built around the Swindon, Bath, Corsham, Chippenham, Westbury, Trowbridge and Melksham areas. Contact business development manager Nicola Carter on 0870 242 3214, or email info@financeXchange.co.uk or via www.financeXchange.co.uk
