Budget 2012: Limited Light Relief Offered for Distressed UK Businesses
Today’s Budget will both help and hinder distressed businesses in the UK, says Brian Green, Advisory Partner at KPMG.
“The decision to raise the personal tax allowance next April to £9,205 and move towards £10,000 in the future is generally welcome and will provide consumers with a little more disposable income to spend on goods and services,” he said.
“However, whilst this is helpful in the long term, it is too little too late for those retailers already in distress, some of which may see March’s quarter date rent payments push them into complete failure.
“The decision not to further defer the planned increase to fuel duty will serve to add to many businesses’ pain and will make their ongoing battle to reduce running costs even more difficult. By not postponing this rise the Chancellor has missed the opportunity to provide embattled businesses with a little relief.”