February
What would you like to see in the 2009 Budget?
Today's economic realities require new approaches. Maintaining the same keeps us inappropriately focused on "rescuing" and "resuscitating". We must concentrate on implementing real change in the current systems - not in "saving" the old and obviously failing ones. We must re-orient our thinking and our practices from greed and fast solutions that ultimately save few, and lead to longer term problems - to that of economic resilience and sustainability. "I would like the next budget to include incentives for economic localisation and regenerative commerce - lessening reliance on outmoded, centralised traditional currency practices. Priority should be given to developing business-to-business mutual credit systems whose prime objectives are to create, circulate and grow economic productivity and liquidity at a local level.
Richard Logie, Director, The Business Exchange (Scotland) Ltd
The Chancellor can start by returning the VAT rate to 17.5%. The 2.5% reduction has been a joke. The extra wages in employing staff to change the price labels and modification of our IT equipment has meant us incurring additional overheads "I would also wish to see the small business tax relief measure re-introduced. Up until a couple of years ago, no tax was paid on the first £10,000 of income, If this was re-introduced, at say between £10,000-£15,000, it would be a tremendous boost for small businesses. "However, I do applaud plans to spread tax payments out across the year on a timetable small businesses can afford. This will bring welcome relief to small firms who need to stabilise their cash flow.
Jacquie Ashcroft, proprietor, The Raspberry Cheesecake, Bridge of Don
Anything that will help to keep the economy moving at the moment is to be welcomed. People working in the caring profession are among some of the lowest paid workers in the country and therefore any budget that provides some relief on family income is to be supported. However, what concerns me is the decision to freeze council tax which reduces the income generating capacity of the local authorities. The demands of social work budgets and the news that many local authorities have to make significant savings will inevitably affect the amount of funding available to care providers such as Cornerstone. "The global economic crisis and the Scottish Government's call for £500m savings across 2010-11 puts a lot of pressure on organisations delivering vital public services in health and social care.
Edel Harris, chief executive of Cornerstone, social enterprise and provider of care
The SRPBA, representing rural property owners and business, calls on the Chancellor to do more in his 2009 budget to support affordable housing in rural areas. Changes to the inheritance tax and VAT regimes could provide a much needed boost to the supply of affordable rented houses in rural Scotland at a time when this has never been more vital. "Applying a permanent, reduced VAT rate of 5% for repairing and maintaining affordable housing stock would result in much needed investment in the private rented sector and particularly the affordable housing stock. "Further, an exemption from Inheritance Tax where properties are let at affordable rents, would help prevent affordable rented housing being sold to pay the tax bill on transfer of title. This is a particular issue in rural areas, where private rented housing can often be the only form of rented housing, with little social housing provision. "The SRPBA has the support of the Scottish Government on both these issues, and is working with the devolved administration to model the scale and impact of the inheritance tax issue in particular. These measures would encourage investment from new and existing landlords and avoid much needed affordable rented housing being taken out of the housing system.
David Fyffe, SRPBA director and member of the Government's Rural Development Council
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