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2010 Budget: The entrepreneurs’ reaction

If you still haven’t had a chance to sift through Darling’s red briefcase, read our live minute-by minute report on this year’s Budget here.

“I think it’s brilliant that Darling is setting up a credit adjudication service and forcing certain banks to give more loans to small business,” says Andy Pearce, CEO at ?8m-turnover conference calling company Powwownow, which employs 36 people. But surely one of the best ways to start a business is with the investment of a business angel friends, family or high-earning individuals who have spare cash to invest, ie: exactly the sort of people that the chancellor insists on taxing at 50 per cent! It’s great, though, that 15 per cent of government contracts will go to small business. I am waiting by the phone, Darling!?

Brad Burton, MD of 4Networking, reckons “Labour has just won the election” based on today’s Budget. “The Budget was a masterclass in positivity, and I really approve of the measures which Alistair Darling has outlined to help small businesses (around half a million businesses in the UK) grow. I would have added a scrappage of NI contributions for the first three years for new businesses, funded by some of the taxes that have been claimed from the bailed-out banks.”

Startup entrepreneur Dale Lovell, managing director of, also applauds today’s announcements: ?We launched our business at the height of the recession, in late 2008, and, as with other fledgling businesses, funding has been hard to come by. The chancellor has agreed with the Royal Bank of Scotland and Lloyds both state-subsidised that they will lend some ?94bn to small businesses and this can only be good news to businesses like ours.

A cut in business rates will be a real benefit for us too as we expand over the next financial year. And personally, I?ll be looking into the entrepreneurial tax breaks.

Roger Taylor, managing director of Cambrian Associates, wonders if the business-rate cut goes far enough. “Most SME owners feel that they are being robbed, not just by their councils, but by HMRC. Raising the investment allowance is pointless when small business owners have no spare cash to take this up.” 

Quentin Pain, CEO and founder of accounting software company Accountz, is not impressed by the 2010 Budget, describing it as ?nothing short of a complete waste of time, political grandstanding and gesture politics at its worst?.

?Who does Labour think it's kidding?" he asks. We all know that whoever wins the next election will have to go through this process again. The Tories are committed to a Budget within 50 days of the election if they win and I have no doubt in my mind that, should Labour win, it will have to come clean and hold an emergency post-election Budget.  "The reality is that our Triple A credit status is under threat and nothing short of keeping the international financial markets calm will do. All this Budget has done is tinker here and there, with some clever stealth taxes thrown in for good measure.

Our resident blogger, Charlie Mullins of Pimlico Plumbers, is fuming too: "Call that a Budget" Looked more like a gem heist to me! This Budget has not moved our economy forward one bit," he spits. "Taxes have already been increase with the 50p in the pound rate due next month, public spending is still out of control, and no attempt is being made to rain it in. There was nothing in the Budget that improved the condition of my business, my workers' incomes or my own prospects. You cannot pay for high spending with low tax and the chancellor just does not want to lower spending! Quite honestly, Darling has failed to balance the books, he's not even close. As far as I can see, the only improvement in the figures comes from bad forecasting the Met Office is more accurate than the Treasury."

What do you think about the key Budget annoucements" Fill in the comment box below and send us your views!



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