It's an interesting strategy considering the fact that tax revenues are declining. There's little doubt that there will be even more pain due to less tax revenue in the next few years. Helping small businesses get started is fine but that's also a long term program that won't solve the immediate problem of a weakening economy that is getting hit with inflation due to the policies to help the bankers fix their balance sheets. How much more will the economy drop in order to help business line its accounts?
Just as predictably as any right winger in the US (or Obama, for that matter) they're talking about loosening regulations. Great for business, higher costs for everyone else. How is that good for the general population who is already suffering? Financial Times:
The chancellor has promised a “Budget for growth” and could accelerate cuts to corporation tax, reinforcing Mr Osborne’s pledge to give Britain one of the world’s most competitive tax regimes.
Mr Osborne has promised to cut the main corporation tax rate by 1 percentage point annually, with plans to cut it to 27 percent in April at a cost of £400 million. Treasury officials refused to confirm or deny suggestions that the chancellor may move faster.
The growth message will be reinforced with a series of supply-side measures, such as looser planning rules, less regulation and the creation of new enterprise zones and more apprenticeships.
